News

Giordano's Pizza chain receives $26 million bid

October 19, 2011

According to an article in the Chicago Tribune, the Giordano's Pizza chain has received a $26 million offer for its operations. The information was taken from court documents filed by the Chicago-based chain in relation to its bankruptcy case.

The court filing asserts Giordano's has entered into an agreement with Italian Food Network LLC, a holding company connected to the owners of the Connie's Pizza restaurant chain. Court documents also indicate that Connie's has signed a confidentiality agreement with Giordano's.

 From the story:

The bid was disclosed in a motion Giordano's made in bankruptcy court seeking approval to conduct an auction for the restaurant business. The offer is for Giordano's company-owned and franchised restaurants in Illinois and Florida and does not include the company's real estate. ...

Giordano's filed for protection from creditors in February, after related entities defaulted on real estate loans. Giordano's and related entities owe $45.5 million to their main lender, Fifth Third Bank.

The Apostolou family had owned the chain, known for its stuffed pizza, since 1988. When it filed for bankruptcy, Giordano's had 45 restaurants in Illinois and Florida, including 35 owned by franchisees, and the pizza operation was profitable, according to court documents.

If their petition is approved to auction the restaurants, interested parties have until Nov. 10 to submit bids.

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