Gigi's Cupcakes, the well-known bakery chain formerly based in Nashville, has filed for chapter 11 bankruptcy protection in the Northern District of Texas, the <em>Nashville Business Journal</em> reported. Launched by Gigi Butler in 2008 with a single Midtown Nashville shop, Gigi's was sold in 2016 to FundCorp, a Texas-based private equity firm. On Jan. 4, chapter 11 petitions were filed on behalf of three Gigi's-related entities: Gigi's Cupcakes LLC, Gigi's Operating LLC and Gigi's Operating II LLC. Similar petitions were also filed for entities tied to Mr. Gatti's, an Austin-based pizza chain acquired by FundCorp in 2015. Separately, Gigi's has been engaged in a complex legal battle with several franchisees related to their franchise agreements. Actions filed by nearly 20 franchisees have been consolidated into one case, which remains on the docket in the Northern District Court of Texas. The most recent filing in the case is a stay of proceedings following the bankruptcy petition.
