Cici’s Holdings Inc., which operates and franchises the Cici’s Pizza buffet chain, and affiliated companies have filed for chapter 11 bankruptcy protection which involves the company’s sale to real estate company D & G Investors LLC, National Restaurant News reported. In Jan. 25 filings in the United States Bankruptcy Court for the Northern District of Texas, Cici’s said the company owned 12 Cicis Pizza locations and franchised approximately 306 others to 128 franchisees. It said the chain’s wide variety of pizza, pasta and salad bar offerings made it a popular venue for large family and other gatherings. “Moreover, CiCi’s asset-light business model, which is grounded in its franchise model and distribution system, historically enabled CiCi’s to generate significant free cash flow with low capital expenditure requirements,” it said. It added that in its 2019 fiscal year, it generated $14.2 million in adjusted EBITDA on revenue of around $177.3 million. As a result of the pandemic, however, accompanied by related government occupancy restrictions and a decrease in consumer demand, the company’s revenue declined to $76.3 million resulting in an adjusted EBITDA loss of $2.7 million. As of Dec. 11, 2020, Cici’s Holdings had a total debt of $81.64 million. At the time of the bankruptcy filing, a total of 214 restaurants had closed, of which 67 had closed permanently, including 6 company-owned locations.
