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Brick oven pizza chain Bertucci’s filed for Chapter 11 chapter safety late Sunday and should shut eating places.
Northborough, Mass.-based Bertucci’s stated in a courtroom submitting it expects to instantly reject 29 leases. It was not instantly clear whether or not these areas had been nonetheless open or had already closed.
For now, the corporate stated it has 59 remaining working location, and they’re nonetheless open. But the corporate warned that it faces a severe threat of going out of enterprise and not using a speedy chapter sale.
The chain has already slashed greater than $5 million in prices via job cuts, lease concessions and different measures because the begin of 2017.
But the informal eating sector’s illnesses had been an excessive amount of to beat. Sales are beneath 2011 ranges, in accordance with a courtroom submitting.
“With the rise in popularity of quick-casual restaurants and oversaturation of the restaurant industry as a whole, Bertucci’s — and the casual family dining sector in general — has been affected by a prolonged negative operating trend in an ever increasing competitive price environment,” the corporate stated in a submitting. “Consumers have more options than ever for spending discretionary income, and their preferences continue to shift towards cheaper, faster alternatives.”
Bertucci’s stated it had reached a tentative deal to promote its belongings to Right Lane Dough Acquisitions LLC, which expects to proceed the enterprise.
The chain, which is owned by funding agency Levine Leichtman Capital Partners, warned that with out the deal it faces a severe threat of liquidation.
The firm at present employs greater than four,200 employees. It has about $119 million in debt.
To attempt to rehabilitate the corporate, Bertucci’s in 2016 revived its basic recipes with a recent aptitude. And in September 2017, the corporate launched a cellular app to ship digital gross sales.
But the corporate stated it was unable to pay its money owed on time.
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.
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