The Corner Bakery restaurant chain filed for bankruptcy this week, after the COVID-19 pandemic emptied out offices, bringing sharp declines in earnings and revenue, WSJ Pro Bankruptcy reported. Chief Executive Jignesh Pandya said a lender recently threatened a foreclosure sale, pushing the company into bankruptcy. The shift to working from home proved problematic for the chain as it generates a large part of its revenue from office catering and serving breakfast and lunch to commuters, according to court papers filed by Mr. Pandya on Wednesday. The Dallas-based chain has locations in about 20 states including California, Texas and Illinois. It was founded in 1991 and was acquired in 2020 by Pandya Restaurant Growth Brands LLC, which is operated by Mr. Pandya. Corner Bakery was negotiating with lenders who alleged it had defaulted on its loans. The company was in talks with its lenders to pay off more than $20 million, when they sold the loan to SSCP Restaurant Investors LLC, which then moved to begin a foreclosure sale of its assets, according to Mr. Pandya’s court filing. SSCP didn’t address Corner Bakery’s offer to make loan payments, according to Mr. Pandya.
