News

Gatti's files bankruptcy with $32M debt

January 10, 2019

Gatti's Pizza owner, Sovrano LLC, filed for bankruptcy protection for that brand and its sister concept, Gigi's Cupcakes, according to businessbankruptcies.com. 

The Chapter 11 debt protection filing was entered Jan. 4 in U.S. Bankruptcy Court in the Northern District of Texas in Dallas. The filing details that the company currently has more than $32 million in secured debt. 

Reached this morning, Gatti's released this statement about the filing:

"Due to issues that were existing when we acquired the brand that we have not been able to resolve, we are taking this step to ensure the strength of the brand and the franchise system moving forward. This is necessary to address the capital structure and primary banking relationship, and is not a result of the health of the brand's operations.

This filing will have no impact on operations at the store level. Customers will not see any changes in service or the quality of our products. In addition, this filing will have no impact on our level of support we provide to each of our franchisees. The company will continue to pay suppliers, vendors and employees."
 

Gatti's, formerly Mr. Gatti's Pizza, was founded in 1969, and had been attempting to recover its footing in today's highly competitive pizza market.