In a lawsuit on Monday night, Cici’s blamed Chapter 11’s action on the “unpredictable and unprecedented scale” of the pandemic, which decimated its financial results and customer demand because it depends too much on its cafeterias.
The Texas-based company has more than 300 locations in 26 states – a sharp drop from the roughly 650 restaurants it owned about a decade ago. Cici’s removed the “pizza” from its name in 2015 and expanded its menu to focus on its unlimited options for soups, salads and desserts. The company was bought by Arlon, a food and agriculture investment firm, a year later.
Unlike other pizza chains, Cici’s did not benefit from delivery. The company said that the home-dining trend “presents significant challenges” to its buffet model and admitted that “it must work harder and more creatively” to differentiate itself from competitors.
Cici’s has between $ 50 million and $ 100 million in liabilities. The chain reached an agreement in December for its main lender, D&G Investors, to buy the company and its $ 82 million in debt.
The pandemic has decimated the restaurant industry. Restrictions on indoor dining and the economic challenges of making money on delivery or delivery have forced several chains to file for bankruptcy in recent months, including Sizzler USA, Friendly’s, California Pizza Kitchen and Vapiano.