Bertucci's files for bankruptcy, asset purchase pact in place
Bertucci's, which offers pizza and other Italian specialties, has filed voluntary petitions for relief under Chapter 11 in the United States Bankruptcy Court for the District of Delaware, according to a company press release.
Under the asset purchase agreement, Right Lane Dough Acquisitions is serving as the stalking horse bidder, which means it has agreed to purchase substantially all of Bertucci's assets and assume certain liabilities, subject to higher or otherwise better offers. The transaction is intended to maximize value for all stakeholders through a fair, open Bankruptcy Court-approved sale process in which Bertucci's will consider all bids for a sale or restructuring of the company.
As part of the bankruptcy filing, Bertucci's has sought Bankruptcy Court approval for the consensual use of cash collateral and $4 million in debtor-in-possession financing which will allow the company to meet its post-filing obligations in the ordinary course of business for customers, employees, trading partners, suppliers, vendors, and other creditors.
"Today's filing is expected to be seamless for Bertucci's guests, trading partners and vendors, and result in minimal disruption to its operations, allowing us to strengthen the company's financial structure and position it for significant future growth," CEO Brian Wright, said in the release.
"We are grateful for the service and loyalty of our team members and are looking forward to focusing on a return to Bertucci's roots: Authentic, high quality, fresh ingredients that guests and team members alike crave and care about."
The brand will keep its 59 Bertucci's locations open for business, and leadership expects to complete restructuring quickly to enable the brand to re-emerge under new ownership, with an improved financial position and stronger brand.
Landis Rath & Cobb LLP is serving as Bertucci's bankruptcy counsel, and Schulte Roth & Zabel LLP is the company's special corporate counsel. Brian Wright will continue to serve as CEO, and Brian Connell will continue to serve as CFO.