In a lawsuit filed late on Monday, Cici blamed her Chapter 11 filing for the “unpredictable and unprecedented magnitude” of the pandemic, which has decimated the outcome and customer demand because it relies heavily on its dining rooms.
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 dropped “pizza” from its name in 2015 and expanded its menu to focus on its unlimited options for soup, salads and desserts. The company was bought a year later by Arlon, a food and agriculture investment company.
Unlike other pizza chains, Cici’s has not benefited from the delivery. The company said the trend to dine at home “poses major challenges” to its buffet model and admitted it “needs to work harder and more creatively” to differentiate itself from the competition.
Cici’s has between $ 50 million and $ 100 million in commitments. The chain reached an agreement in December for its primary lender, D&G Investors, to buy the company and its $ 82 million in debt.
The pandemic has decimated the restaurant industry. Restrictions on in-house dining and the challenging economy of making money from delivery or takeout have forced a number of chains to file for bankruptcy in recent months, including Sizzler USA, Friendly’s, California Pizza Kitchen and Vapiano.