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Cici’s files for bankruptcy as pandemic intensify the decline of All-You-Can-Eat Pizza buffet

By Ishika@10kinfo.com on Jan 28, 2021 | 03:38 AM IST

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CiCi's Holdings Inc. filed for Chapter 11 bankruptcy protection in response to coronavirus pandemic constraints after in-person dining collapsed and food delivery services surged.

Meanwhile, the privately headed the all-you-can-eat pizza buffet chain has declared its sale to its primary lender, D&G Investors.

The pizza company applied for chapter 11 protection on Monday in Bankruptcy Court in Dallas with a prepackaged reorganization plan funded by lender D&G Holders LLC.

D&G will take ownership of CiCi's corporation in the proposed agreement, which needs court approval, by turning secured debt into 100 percent of the equity of the reorganized firm. According to court records, the deal called for an expedited chapter 11 phase that is scheduled to be finished by March to resolve the company's almost $82 million debt burden.

In Monday's bankruptcy filings, Cici said it had assets ranging between $10 million to $50 million and liabilities of $50 million to $100 million. Weingarten Realty Investors and Saputo Cheese became the top two creditors.

Although revenues for pizza chains such as Papa John's, Domino's Pizza, and Yum Brands' Pizza Hut have been boosted by the coronavirus pandemic.

But, buffet-style restaurants such as Cici's have dropped their sales, with the dining constraints and increased concern of customers over cleanliness amid pandemic exacerbated their decline.

In the United States, 318 stores in 26 states are served by Cici's and its franchisees. It had more than 650 restaurants in 2010. The Texas-based chain specializes in pizza but also serves sandwiches, wings, and desserts.

CiCi generated sales of around $177.3 million in the fiscal year 2019, but revenue fell to $76.3 million in 2020, as per the court papers.

CiCi's isn't the only pandemic-affected chain. About 100 Souplantation and Sweet Tomatoes buffet-focused restaurants, Garden Fresh Restaurants, Punch Bowl Social, and the parent company of Friendly’s Restaurants filed for bankruptcy liquidation after failing to find a clear path to switch to a takeout model.

More than 110,000 restaurants are permanently closed in 2020, the National Restaurant Association reported.


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