Papa John's franchisee files bankruptcy as chain plans 300 closures by 2027

Papa John's franchisee Papa ZHS LLC and four affiliates filed for Chapter 11 bankruptcy on Nov. 9, listing $1 million to $10 million in liabilities, as the pizza chain faces declining sales and industry-wide closures. The New Kensington, Pa.-based debtor owes over $2.9 million in unsecured claims, including $909,000 to Itria Ventures and $811,000 to the Small Business Administration. Owner Yasir Hussain, who opened Papa John's 6,000th restaurant in 2025, operated 12 locations before the filing. Papa John's has closed 239 restaurants worldwide this year, including 146 in North America, targeting 300 closures by 2027. Domestic comparable sales fell 7.4% in the nine months ended Sept. 27, 2026, amid intense pizza sector competition.