Sovrano LLC, the owner of Mr. Gatti’s Pizza and Gigi’s Cupcakes, filed for Chapter 11 Bankruptcy protection in Texas last Friday.
Gigi’s also filed for reorganization in a Texas court, noting liabilities between $1 million and $10 million.
Sovrano noted liabilities ranging from $10 million to $50 million.
Both Gigi’s and Sovrano are affiliated with FundCorp, a Texas-based Private Equity Firm.
This continues a string of restaurant bankruptcy cases over the last year. We suspect that high debt loads have strangled some good brands. It will be an interesting trend to continue to watch.
The first Gigi’s opened in Nashville in 2008. Gigi Butler moved to Nashville in 1994 with $500 cash in her hand and today, there are nearly 100 locations across the country, claiming a “signature swirl” of icing on the cupcakes. Later FundCorp bought Gigi’s cupcakes. You can read more about Gigi’s story here.
About Mr. Gatti’s
Mr. Gatti’s Pizza was founded in Texas by James Eure as The Pizza Place. In 1969, a second location was opened as Mr. Gatti’s as a tribute to Mr. Eure’s father-in-law. Today, there are over 100 locations across the country. You can read more about Mr. Gatti’s story here.