Corner Bakery Café files for bankruptcy
Corner Bakery Café has sought Chapter 11 bankruptcy protection.
The urban-oriented, fast-casual restaurant chain has struggled with declining eanings and revenues as many office workers continue to work from home, even with the easing of the pandemic.
Corner Bakery listed estimated assets and liabilities both between $10 million and $50 million in its filing in the Delaware Bankrutpcy Court.
According to court documents state, the company has suffered from inflationary costs, supply chain disruptions, the challenging labor market and impatient landlords. Corner Bakery defaulted on its credit facility in 2022.
In October 2020, investment firm Pandya Restaurant Growth Brands, a subsidiary of Rohan Group of Companies, bought Corner Bakery from Roark Capital Partners. Terms of the transaction were not disclosed.
"Pandya Restaurant Growth Brands brings an enthusiastic, experienced, and successful ownership group to Corner Bakery, as well as access to resources that we need to continue to operate our business in this challenging environment said then-CEO Frank Paci in a statement at the time of the acquisition.
According to a report by restaurantbusiness.com, Corner Bakey has $33.8 million in secured debt, a legacy of debt taken out in 2017 that Pandya inherited when it bought the restaurant company. SSCP Restaurant Investors acquired the debt on the secondary market and made moves to take over Corner Bakery, establishing a sale process and prompting the bankruptcy filing the report said.
The Dallas-based Corner Bakery was founded in 1991, in Chicago, and launched a franchising program in 2017. It operates approximately 140 locations in 19 states, including 44 in California, 33 in Texas and 18 in Illinois (with seven in Chicago), according its website. The Cornery Bakery restaurant features artisan-inspired, seasonal menu options made with fresh ingredients.
According to the filing, Corner Bakery plans to employ Culhane Meadows PPLC as counsel, Hilco Trading LLC as financial adviser and investment banker, and Kurtzman Carson Consultants LLC as notice, claims and balloting agent and administrative adviser.
The bankruptcy also includes CBC Restaurant Corp., which is wholly owned by Corner Bakery Holding Co., and CBC Cardco, Inc., which is wholly owned by CBC Restaurant Corp.