Cici’s buffet chain filed for Chapter 11 bankruptcy and announced its sale to D&G Investors, its main creditor.
While the coronavirus pandemic has increased sales for pizza chains like Papa John’s, Domino’s Pizza and Yum Brands’ Pizza Hut, buffet restaurants like Cici’s have seen their sales plummet. Rotating buffets were already struggling before the crisis, but dinner restrictions and consumers’ growing concern about cleanliness have accelerated their decline.
Cici’s and its franchisees operate 318 locations in 26 states in the United States. In 2010, it had more than 650 restaurants.
In bankruptcy filings, Cici’s said it had between $ 10 million to $ 50 million in assets and $ 50 million to $ 100 million in liabilities. The two main creditors were Weingarten Realty Investors and Saputo Cheese. In December, D&G Investors bought $ 82 million in debt from Cici, according to the commercial publication Restaurant Business.
The chain changed its name in 2015, removing the name “Pizza” from the name in an attempt to draw attention to the other menu items. A year later, it was bought by Grupo Arlon, an investment company focused on food and agriculture.
Cici’s joins a number of other restaurant chains that sought bankruptcy protection during the pandemic, including the Punch Bowl Social and the parent company of Friendly restaurants. According to National Restaurant Association estimates, more than 110,000 restaurants closed for good in 2020.
This story first appeared on CNBC.com.