Pizza Chain Bertucci’s Files for Chapter 11 Protection
This week, Massachusetts-based pizza chain Bertucci’s filed for Chapter 11 bankruptcy protection in the Delaware (seeking joint administration under case No. 18-10894). Bertucci’s operates 59 stores, 29 of which it plans to reject.
According to The Wall Street Journal, an affiliate of Chicago-based investment firm Right Lane Capital LLC has agreed to purchase the chain’s assets, but that bid will be tested at a bankruptcy-court supervised auction.
Hilco Real Estate was hired in January to review its leases and negotiate better terms. The debtors report that this effort saved $3.5 million. However, the restaurant’s sales continued to fall since 2011, and a forbearance agreement with lenders expired earlier this year.
The company is part of a wave of other casual eateries—including Joe’s Crab Shack, Romano’s Macaroni Grill, Così Inc. and Logan’s Roadhouse, which recently filed for Chapter 11 bankruptcy protection.