DENVER (CBS4) - Village Inn's parent company, American Blue Ribbon Holdings, LLC., filed a petition for Chapter 11 reorganization Monday. The company also announced it will close 33 stores, several of which are in Colorado.
The store closures will result in a workforce reduction of approximately 1,100 people, according to the petition filed with the U.S. Bankruptcy Court of Delaware.
"The company believes the reorganization will facilitate the company's Village Inn and Bakers Square restaurant brands evolution to a healthy core of restaurants and support an approach to the brands that is most beneficial for all stakeholders," said Rob Hoskins, spokesperson for American Blue Ribbon Holdings. "As part of the reorganization, the company will explore a variety of strategic and structural initiatives to best position the company for success in the future."
According to a news release, the company's financial trends have been negative since 2017, as the restaurant struggled with declining sales. In order to fund operating losses, the company closed and sold its support facility in Denver in 2019.
Several companies have recently announced closures in Colorado due to financial struggles. The restaurant chain Bar Louie filed for bankruptcy on Monday and closed dozens of locations including restaurants in Colorado.
Lucky's Market, a niche grocery chain, also filed for bankruptcy protection Monday. The grocer plans to shutter more than 30 stores around the country. Earlier this month, Pier 1 Imports announced it's closing nearly half its 942 stores.
Retailers announced plans to close more than 9,300 stores in 2019 — a nearly 60 percent jump from 2018, according to Coresight Research, and shattering the previous record of roughly 8,000 store closures in 2017, according to an analysis by Business Insider.
American Blue Ribbon Holdings has established a toll free hotline for team members, customers and suppliers to address any questions at (833) 991-1558.
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