According to the Chicago Tribune, “Hit by a recessionary drop in consumer spending, the parent company of pizzeria chain Uno Chicago Grill filed for Chapter 11 bankruptcy protection Wednesday as it pursues a $142 million debt-for-equity deal.”
“West Roxbury, Mass.-based Uno Restaurant Holdings Corp. said in a statement that its bankruptcy filing in the Southern District of New York involves a “pre-arranged reorganization transaction,” meaning the company has worked out a plan with its major bondholders. According to court documents, the two sides reached an agreement in principle in August. Rick Hendrie, senior vice president of marketing, said Uno could emerge from bankruptcy as soon as spring. In the meantime, its 179 restaurants — including the historic Pizzeria Uno location at Ohio Street and Wabash Avenue in Chicago — should remain open.”
“‘In other cases, a (Chapter 11 bankruptcy) can be messy and not good news,’ Hendrie said. ‘That’s not the case here,’ he said, because the company already has an agreement with bondholders,” the story said.