SAN DIEGO, Oct. 3, 2016 /PRNewswire/ --
- Company Takes Action to Begin Business Transformation
- Agreement Anticipates Sale of Business to Second Lien Lenders, Subject to Higher and Better Bids
- Transformation Plan Expects Closing of between 20-30 Underperforming Restaurants
- Company Expects to Complete Transformation by December 5
Garden Fresh Restaurant Corp. ("Garden Fresh") today announced that it has reached an agreement with its lenders to restructure the Company's debt. Under terms of the agreement, the Company will significantly reduce debt obligations and improve its financial structure.
To implement the restructuring, Garden Fresh has filed voluntary petitions for reorganization under Chapter 11 protection. Piper Jaffray has been engaged to assist with the anticipated sale of the business to second lien lenders, subject to higher and better bids.
The Company also plans to close between 20 and 30 underperforming restaurants to strengthen its financial position, pending approval from the court overseeing the reorganization. Garden Fresh said it has received commitments for debtor-in-possession (DIP) financing from second lien lenders to fund post-petition operating expenses, including its obligations to employees and suppliers. The Company does not expect the filing to have meaningful impact on its day-to-day operations.
"Garden Fresh will operate our business as usual, and we remain focused on providing fresh, wholesome food and great service to our guests," said John Morberg, CEO of Garden Fresh. "By improving our capital structure through this restructuring, we'll be able to accelerate the changes underway to refresh our restaurants and build a strong future."
The Company expects to emerge from the Chapter 11 process by December 5. Additional information about is available by calling the Garden Fresh communications hotline at 858.675.1600 x 1901.
About Garden Fresh Restaurant Corp.
Garden Fresh was founded in 1978 and is headquartered in San Diego, CA. It operates more than 100 restaurants throughout the United States.
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SOURCE Garden Fresh Restaurant Corp.