As COVID continues to wreak havoc on the restaurant business, a beloved pizza chain has been compelled to file for chapter. Cici’s, a buffet pizza restaurant with roughly 318 places unfold throughout 26 states, filed for Chapter 11 chapter safety within the chain’s dwelling state of Texas on Jan. 25. Read on to find what this implies for Cici’s future, and for some much less beloved eateries, This Is the Most Hated Restaurant Chain in America.
In 2009, Cici’s had 650 eating places throughout the U.S., a quantity that had dipped to 430 as of 2016, in line with Debtwire. In the chain’s chapter submitting, Cici’s reported $81.64 million in debt, with the chain’s CFO, Richard Peabody, asserting that the pandemic had dealt a “sudden and significant blow” to the model’s monetary safety.
When COVID hit the U.S. in March, Cici’s quickly closed 203 of its eating places, completely closed 61, laid off 39 company workers, and minimize government pay by 25 p.c in a bid to liberate money. However, the pandemic nonetheless “significantly disrupted Cici’s restaurant operations and severely limited customer demand,” forcing the company’s hand when it got here to submitting, in line with Peabody. He famous in court docket paperwork that in-person eating sometimes accounts for near 99 p.c of the chain’s earnings.
While Cici’s hasn’t but introduced which, if any, extra places will shut, it is simply the most recent in a protracted line of pandemic casualties. Read on to find which different manufacturers are closing up store as a result of COVID. And for extra shops that are not lengthy for this world, This Iconic Department Store Just Filed For Bankruptcy.
Beloved magnificence and wellness model L’Occitane introduced that it had filed for Chapter 11 chapter safety on Jan. 26. In the company’s chapter submitting, L’Occitane introduced that its in-person gross sales had dropped 56.5 p.c between April and Dec. 2020, and that, in response to a subsequent rise in on-line gross sales, it might be shuttering 23 of its 166 stateside shops. And for extra corporations buckling amid the pandemic, This Beloved Chain Is Closing All of Its Stores.
In January, iconic chocolatier Godiva introduced that it might be closing all 128 of its shops within the U.S. by the top of March. “Of course, this decision was difficult because of the care we have for our dedicated and hardworking chocolatiers who will be impacted. We are grateful for all they have done to make wonderful moments for our consumers and spread happiness through incredible customer service and living our values and behaviors,” stated Godiva CEO Nurtac Afridi in a press release. However, the company will proceed to promote its candies at many shops all through the U.S., and plans to extend its distribution of merchandise by these channels, “making it even easier for our consumers to enjoy Godiva,” stated Afridi. And for extra corporations making large adjustments, This Beloved Home Goods Chain Is Closing More Than 40 Stores.
Department retailer Belk, which operates 300 shops all through the U.S., filed for Chapter 11 chapter safety on Jan 26., 2021. The chain, which opened its first retail location 130 years in the past, will proceed “normal operations” throughout its restructuring, which can assist it offload approximately $450 million in debt, USA Today stories. And for the most recent retailer closure information delivered straight to your inbox, enroll for our each day e-newsletter.
Christopher & Banks, a clothes retailer with 449 U.S. places, filed for Chapter 11 chapter safety on Jan. 14. The retailer introduced that it “expects to close a significant portion, if not all, of its brick-and-mortar stores” within the close to future as a result of losses it had just lately incurred. “Due to the financial distress resulting from the pandemic and its ongoing affect, we elected to provoke this course of and pursue a possible sale of the business in complete or partially to position the Company for the long run,” the company’s president and CEO, Keri Jones, stated in a press release. And for one other model that is beginning to disappear, take a look at This Popular Clothing Store Is Closing at Least 200 Locations.