Tuesday, March 1, 2011

Giordano's Hits Bankruptcy

From ChicagoTribune.com:

Giordano's, known for its "world famous Chicago stuffed pizza," won court approval Thursday to use a portion of its $36 million bankruptcy loan to continue operating.

Fifth Third Bank provided the financing. The bank agreement outlines the possible sale of the company.

Giordano's operates six company-owned stores in the Chicago area, four joint-venture stores and 35 franchisee locations, according to its court filing. Giordano's also sells frozen stuffed pizzas via overnight delivery.

The pizza chain and 32 affiliate businesses filed for Chapter 11 bankruptcy reorganization Wednesday in federal court in Chicago. It owes $45.7 million to its main lender, Fifth Third Bank, according to the filing.

In addition to Giordano's Enterprises Inc., affiliated businesses that filed for bankruptcy include Americana Foods Inc. of Mount Prospect, a major food supplier to Giordano's restaurants in Illinois, and Randolph Partners LP, a real estate holding company that owns 12 buildings leased to four company-owned restaurants, two joint ventures and six franchisees.

Giordano's was founded in 1974 by Efren and Joseph Boglio, immigrants from Argentina. In 1988 John and Eva Apostolou purchased control of the casual dining eatery that offered an array of Italian food but was primarily known for its stuffed pizza.

Giordano's to continue operating despite bankruptcy filing
Alejandra Cancino and Becky Yerak
February 18, 2011

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