Operations

Cicis successfully completes restructuring

Logo: Provided/file

March 16, 2021

Cicis has successfully emerged from Chapter 11 protection, completing the process in less than two months. The company said the reorganization strengthened its corporate team, company operations and financial structure and it coincides with the simultaneous D&G Investors' acquisition of the brand.

Cicis Enterprises entered into an agreement to sell the company to D&G Investors when it announced its restructuring plans in early February, according to a press release. D&G Investors, a newly-formed affiliate of SSCP Management and Gala Capital Partners, is a restaurant investment, ownership and operations team with a combined 60-plus years of experience at the franchisee and franchisor levels.

Together, the new ownership group owns and operates more than 200 restaurant locations in its collective portfolios. The sale to D&G Investors includes Cicis Enterprises, JMC Restaurant Distribution, and all of its assets and subsidiaries. As has been the case throughout the restructuring process, current Cicis restaurant operations will continue to serve customers, the release said.

"We are looking forward to partnering with D&G Investors going forward and ensuring the brand is poised for an extremely bright future," CiCi's President and COO Jeff Hetsel said in the release. "For more than 35 years, Cicis has held a special place in the hearts, minds and appetites of many Americans and our focus is to ensure our guests keep that connection to our brand for many years to come."

Cicis reorganized the company with creditors and additional entities over the last couple months to finalize the D&G Investors acquisition. As a result, D&G Investors is infusing its operational know how and investment capital to sustain near and long-term business objectives.

Anand Gala, founder and managing partner of Gala Capital Partners, along with Chris, Sunil and Puja Dharod, principals of SSCP Management, led the formation of D&G Investors.

"Cicis has so many attributes that are appealing and we believe in a bright future in this post-pandemic world," Chris Dharod said in the release. "While the pandemic has been a difficult time for many restaurant brands, not just Cicis, the brand does have staying power because of the strength of the brand and the business model. We are committed to advancing the company and working closely with franchisees to grow their businesses together."

Currently, Cicis has operations in more than 30 states totaling just under 300 locations. Under D&G Investors, Cicis expects to benefit from the parent company's ability to scale concepts and refine unit-level economics through operational and supply chain efficiencies.

"Chris, Sunil and I are franchisee-focused leaders that share very similar principles in how we nurture and grow franchise systems. We are geared towards nurturing the success of our franchisees on a local level," Gala said in the release. "At the same time, we see an enormous opportunity to use the proven business model Cicis has and expand on it to grow the franchise system into its potential."

Financial details of the acquisition have not been made available. Cicis headquarters will remain in the Dallas area.