Papa John's Pennsylvania Franchisee Papa ZHS LLC Files for Bankruptcy
Papa ZHS LLC filed for Chapter 11 bankruptcy protection following a broader sales decline for the Papa John's pizza chain.
The Pennsylvania-based Papa John's franchisee Papa ZHS LLC filed for Chapter 11 bankruptcy protection on November 9, 2026. The filing includes four affiliated businesses and reports assets between $100,000 and $500,000 against liabilities ranging from $1 million to $10 million, including more than $2.9 million in unsecured creditor claims.
Owned by Yasir Hussain, the company operated 12 restaurants. Hussain began his career with the chain as a dishwasher 20 years ago and was credited with opening the company's 6,000th location in February 2025. He had been preparing to open a 13th restaurant in Cleveland, Ohio, prior to the filing.
The bankruptcy follows a period of financial struggle for the parent company, Papa John's, which reported an 8.3% drop in North American comparable sales for the third quarter ending September 27. On November 5, Papa John's lowered its full-year 2026 financial outlook and introduced a transformation strategy called "Unbox Better" to rebuild customer loyalty and improve economics for its franchisees.
