This Beloved Pizza Chain Just Emerged from Bankruptcy
Beloved pizza chain Cicis filed for Chapter 11 bankruptcy in January, but the company seems to be on the mend, which means you'll still get to enjoy its bottomless pizza offerings. Less than two months after the filing, the buffet chain has emerged from the bankruptcy restructured and under new ownership. According to Verdict Foodservice, Cicis will divest itself to D&G Investors, an affiliate of two other financial groups that was formed expressly for investment in restaurants.
D&G Investors was already Cicis primary lender, according to CNN, and the company will not only acquire Cicis Enterprises but will also purchase the company's $82 million in debt. However, Cicis footprint has decreased considerably in the last decade, and especially last year. Founded in 1985 in Plano, Texas, the chain at its peak boasted 650 locations spread across dozens of states. Today there are about 318 Cicis units in active operation.
The company's financial decline was also steep in recent years. According to QSR Magazine, Cici's earned $177.3 million in revenue in 2019 only to see earnings drop to $76.3 million in 2020, a decline of more than $100 million. This precipitous shortfall was largely accelerated by the COVID-19 pandemic which saw customers avoiding buffet-style restaurants, a blow to Cicis which depends on in-store dining for a reported 99% of revenue.
In emerging from bankruptcy, Cicis has for the time being avoided the fate of numerous restaurants permanently shuttered in the wake of the pandemic, including national chains like Souplantation and globally-lauded independents like Gotham Bar & Grill in New York City.
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