Corner Bakery Café, a Dallas-based cafe chain with over 120 locations across the United States, has filed for Chapter 11 bankruptcy, with assets and liabilities estimated between $10-$50 million. The company, which was sold by Roark Capital Group to Pandya Restaurant Growth Brands in October 2020, has two locations in San Antonio, Texas.
The bankruptcy filing comes amid a challenging time for the restaurant industry, with the ongoing COVID-19 pandemic forcing many businesses to close or reduce operations. The Rohan Group of Companies, which owns Pandya Restaurant Growth Brands, had hoped to expand the Corner Bakery brand, but it remains unclear how the bankruptcy filing will impact those plans.
In a statement following the acquisition of Corner Bakery, Jignesh (Jay) Pandya, the owner of Pandya Restaurant Growth Brands, expressed his belief that the chain offered “high quality kitchen crafted food and good, consistent customer service” that families are seeking.
The bankruptcy filing highlights the struggles of many restaurants and food service businesses during the pandemic, as well as the challenges of expanding in a highly competitive industry. It remains to be seen how the bankruptcy filing will impact Corner Bakery Café and its customers, as well as the wider restaurant industry in the United States.