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Round Table Pizza, Inc., which is headquartered in Concord, announced Friday that it has filed a petition for protection under Chapter 11 with the U.S. Bankruptcy Court in Oakland.
The move is designed to improve the company’s cash flow and stabilize its business through recapitalization of its debt and renegotiation of above-market leases, according to the filing. Despite improving business performance and expense reductions, the company said seeking legal protection under Chapter 11 was necessary to improve the company’s competiveness as the economy recovers.
This action will not impact Round Table’s 148 franchisees that operate 355 independently owned Round Table Pizza restaurants on the West Coast, including a restaurant on Main Street in Pleasanton. Round Table Pizza, Inc. said that it will close some unprofitable, company-owned restaurants but stressed that most of its company-owned locations and all of its franchised locations will remain open, with minimal impact on consumers.
“Our company has experienced consistent growth and management has been responsive to the difficult economic environment, “explained Rob McCourt, the company’s president who has also been appointed CEO by the Board. “Unfortunately, we are compelled to take further steps, including this reorganization plan, to meaningfully address the high cost of our capital and above-market leases.”
“Round Table remains open for business and fully operational, and we will continue to serve our customers The Last Honest Pizza, “said McCourt.
McCourt also said that the company was placing a high priority on communication to employees, franchisees, vendors, and other key audiences through the reorganization process, which is expected to take approximately six to 12 months.
Founded in Menlo Park in 1959, Round Table Pizza has a system of approximately 470 franchised and company-owned stores operating in the western U.S. with system revenues in excess of $400 million. Round Table Pizza, Inc. is a private, 100% employee-owned company.
