Bankruptcy Debrief for the Week of April 16th


Northeastern pizza chain Bertucci’s files chapter 11 to pursue asset sale, slice debt

Brick oven pizza restaurant Bertucci’s filed for chapter 11 amid declining sales and subpar financial results. Facing a high debt load, the company made numerous attempts to improve its finances by lease concessions and job cuts over the last year and a half.

The company has about 60 stores operating and has indicated that some stores are set to be closed, while others will be sold at auction with Right Lane Dough Acquisitions acting as the stalking horse bidder. Right Lane Dough Acquisitions will be providing a $4 million loan to fund Bertucci’s operations and court costs during the case.

Bertucci’s cited the consumer’s shift to quick-casual restaurants as well as the increasing saturation of the restaurant industry in the filing.

As of the filing date, the company’s $120 million of debt, comprising $110.4 million in secured loans and about $9 million owed to vendors, landlords and other unsecured creditors.

Read CFO and Senior Vice President Brian Connell’s declaration in support of the first day motions here.

View the chapter 11 petition here.




Debt-saddled Keast Enterprises steers into chapter 11, will focus on equipment sales

Iowa-based Keast Enterprises, a company which includes Hatswell Farms and Cyclone Cattle, filed for chapter 11 to provide for a restructuring of part of the business and a sale of part. The company was initially founded in 1980 as two farms, Keast Enterprises and Hatswell Farms, with just under 1,000 acres of land and 500 head of feeder cattle. Over the years, the business expanded to what it is today, including 4,000 acres of farmland, a 4,000-head cattle feedlot and an equipment-sales business.

Through the bankruptcy process, the company intends to continue operating Keast Sales, which  focuses on the sale of farm equipment, while selling its cattle feedlot, Cyclone Cattle, and discontinuing farm operations of Hatswell Farms and leasing out the farm ground.

As of the filing, the company listed $10 million to $50 million of both assets and liabilities.

Read President Russel A. Keast’s declaration in support of the first day motions here.

View the chapter 11 petition here.




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