The U.S. division of bakery chain Le Pain Quotidien filed for bankruptcy protection as pandemic restrictions continue to wreak havoc on fast-casual dining chains, WSJ Pro Bankruptcy reported. The Belgian company’s U.S. arm said in court papers that it hoped to avert a complete liquidation of its 98 Le Pain Quotidien locations with a proposed $3 million sale of the business to fast-casual restaurant operator Aurify Brands LLC. The sale to Aurify, which requires court approval, would allow for 35 Le Pain Quotidien restaurants to reopen and would allow some employees who had been terminated to regain their jobs, said Steven J. Fleming, the U.S. division’s chief restructuring officer, in a sworn declaration in the U.S. Bankruptcy Court in Wilmington, Del. Even before the Covid-19 pandemic kept customers from dining out, PQ New York Inc., which licenses the Le Pain Quotidien brand name from a Belgian division, was in financial trouble. More than half the company’s sales come from the New York City metro area, which is saturated with restaurants, Fleming said. He said that most of the dining industry’s recent growth has come from delivery and to-go sales, rather than Le Pain Quotidien’s casual dine-in concept. Fleming also blamed flagging investments in stores, a lagging digital platform and turnover within corporate management.
