The mum or dad firm of Glad Joe’s Pizza & Ice Cream and Tony Sacco’s has filed for Chapter 11 Federal Chapter safety.
Dynamic Restaurant Holdings, which owns the Glad Joe’s Pizza & Ice Cream and Tony Sacco’s manufacturers, filed for Chapter 11 Federal Chapter safety this month, in response to a Sept. 2 submitting within the District of Delaware, which stated that the corporate had $5.3 million in secured debt and can shut some shops. The corporate’s two franchising entities — Glad Joe’s Franchising and Tony Sacco’s Franchising — weren’t a part of the submitting.
The corporate issued a press launch on Sept. 2 saying that none of Glad Joe’s 44 or Tony Sacco’s two franchised areas can be affected. Glad Joe’s, nevertheless, has closed 4 firm areas in current months, and the model closed two company-owned Tony Sacco’s models.
Tom Sacco and Tony Sacco usually are not associated.
“Whereas no person needs to place an organization via a restructuring, it was the best factor to do for the long-term well being and continued development of the long-lasting Glad Joe’s model,” Sacco stated within the information launch. “After I arrived at Glad Joe’s, I discovered actually fast the place the issues have been. With COVID wreaking havoc on our trade, costly sale-leasebacks of company-owned eating places happening simply previous to my arrival, a big enhance in meals prices exacerbated by provide chain points, and an ever harder labor market, our challenges stored growing exponentially.”
Sacco advised Pizza Market in June 2022 that Glad Joe’s had 30 eating places within the pipeline with a few giant offers within the works, together with one within the Center East.
Sacco advised Pizza Market Tuesday afternoon that no less than six Glad Joe’s are slated to open in 2023, and as much as 10 relying on provide chain challenges. When requested how Tony Sacco’s and Glad Joe’s plan to climate the storm, Sacco stated the storm had already began to subside.
“When the corporate did a sale leaseback again in 2018, the owned and paid for actual property created new debt at 2018 costs when a number of the actual property (such because the Rockingham, Iowa, location) was virtually 40 years previous,” Sacco stated. “That added debt, coupled with the unexpected Covid-19 issues from provide chain points, inflation, workers hiring shortages and vital will increase in wages, created the problem that I inherited; nevertheless, I knew what was required to resolve these challenges and accepted the chance to steer this nice family-centric pizza model again to good well being and significantly better occasions. There are solely two companies which can be impacted. These two companies, the primary operates our firm Glad Joe’s, and the second operates our firm Tony Sacco’s.
“Neither company has something to do with our franchisee operated companies for every model and people companies signify over 90-plus% of our restaurant manufacturers. Glad Joe’s home franchising company and Glad Joe’s worldwide franchising company usually are not impacted. Neither is the Tony Sacco’s franchising company. These franchisee based mostly companies usually are not related to the chapter submitting.”
The model additionally signed an settlement to open a brand new Glad Joe’s prototype in St. Louis.
“After we’ve our plan of reorganization confirmed which ought to be in November of this 12 months, our future seems a lot brighter as a financially wholesome company entity and with manufacturers that immediately’s shopper, each domestically and internationally, are very supportive of and obsessed with,” Sacco stated.
In accordance with the chapter submitting, Dynamic has $1,908,481.29 in whole property for FY 2022, down from $2,090,675.43 the prior 12 months.
Complete liabilities for fiscal 12 months 2022 got here to $2,455,766.29.
Mandy Wolf Detwiler is the managing editor at Networld Media Group and the positioning editor for PizzaMarketplace.com and QSRweb.com. She has greater than 20 years’ expertise overlaying meals, individuals and locations.
An award-winning print journalist, Mandy brings greater than 20 years’ expertise to Networld Media Group. She has spent almost 20 years overlaying the pizza trade, from unbiased pizzerias to multi-unit chains and each measurement enterprise in between. Mandy has been featured on the Meals Community and has received quite a few awards for her protection of the restaurant trade. She has an insatiable urge for food for studying, and might inform you the place to search out the most effective slices within the nation after spending 15 years touring and consuming pizza for a residing.