Massachusetts pizza company Bertucci’s recently decided that it was in dire financial straits and therefore had to make a change. That change came in the form of a Chapter 11 bankruptcy filing. The filing took place on a Sunday, with many restaurants closing as a result.
The company, in its court filing, said it expected to reject a total of 29 leases immediately. For now, Bertucci’s still has 59 locations, and the pizza chain remains open. However, company officials said that the business runs the risk of shutting its doors without a fast bankruptcy sale.
The pizza company has already trimmed costs amounting to $5 million through other methods since the beginning of 2017, such as job cuts and lease concessions. Still, sales at the eatery are currently below their 2011 levels. Part of the reason that Bertucci’s is struggling is that today’s restaurant industry is saturated, and quick-casual eateries are becoming increasingly popular. Consumers simply want faster and cheaper alternatives. The company, whose debt totals around $119 million, has over 4,200 workers at the moment.
Sometimes, companies in Massachusetts and elsewhere cannot overcome their financial struggles due to changing market conditions or changes in their individual industries. In these situations, filing for Chapter 11 bankruptcy protection may be one of the smartest things a business owner could do. Bankruptcy can help underwater businesses to get back on track and even grow to unprecedented levels of success down the road. An attorney can easily walk a business owner through the bankruptcy process, ensuring that his or her best interests are protected at each stage of the process.
Source: usatoday.com, “Bertucci’s files for Chapter 11 bankruptcy, may close stores“, Nathan Bomey, April 16, 2018