According to an article in the Star-Telegram, the largest CiCi's Pizza franchisee, with 53 outlets has filed for Chapter 11 bankruptcy and expects to emerge as a viable new company.
The article said:
"Dallas-based Marwin Group has territories in eight states, including the Houston market in Texas. Marwin's pizza management firm, Winmar Pizza, reported liabilities of $19.65 million, including secured loans of about $19 million owed to Frost Bank and $3.59 million in assets, according to its bankruptcy filing."
This Chapter 11 bankruptcy may come as a surprise for many readers as the fast-food industry has long been considered impervious to the ravages of the recession. But this Pizza franchisee's bankruptcy may prove an ominous sign of future troubles in the fast-food sector. To the surprise of some analysts many consumers who have faced job losses or who fear it, have decided to cut back on their fast-food intake. In previous recessions, fast-food always proved robust; but we may be in for a new development as this recession drags on. And it's not just fast-food that's being hit, as we discussed yesterday, many high-end restaurants are getting squeezed by the recession and find themselves facing bankruptcy. If the economy continues its downward spiral, the entire restaurant industry may face a large number of bankruptcies.