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.
If you are a landlord with a Bertucci’s store it is important to know your rights, now. Stark & Stark’s Shopping Center & Retail Development Group can help. Our bankruptcy attorneys regularly represent landlords throughout the country, including recently in the District of Delaware, Eastern District of Missouri, District of New Jersey, Southern District of New York, District of Minnesota and Eastern District of Pennsylvania on a variety of issues. Most recently, our Shopping Center Group has represented landlords and trade creditors in the Charming Charlie, Toys R Us, Macaroni Grille, Joe’s Crab Shack, Payless, Eastern Outfitters (EMS Part 2), EMS, Golfsmith, RadioShack, General Wireless (RadioShack Part 2), Gander Mountain, and A&P, Chapter 11 bankruptcy cases.
For more information on how Stark & Stark can assist you, please contact Thomas Onder, Shareholder at (609) 219-7458 or firstname.lastname@example.org. Mr. Onder writes regularly on commercial real estate issues and is an active member of ICSC and Chair of the ICSC PA/NJ/DE Conference and Deal Making Show for 2018 in Philadelphia this September.