|North Adams, Pittsfield Papa Gino's Escape Closure|
|04:40PM / Monday, November 05, 2018|
NORTH ADAMS, Mass. — Papa Gino's restaurants in North Adams and Pittsfield escaped closure this weekend as their troubled parent company prepared to sell to an equity investment firm.
More than 50 Papa Gino's pizzerias — largely in the eastern and central part of the state — were shuttered abruptly over the weekend with reports of employees showing up for work to locked doors and no explanations.
On Monday, the pizzeria's parent company PGHC Holdings Inc. announced an agreement in principle to sell to Wynnchurch Capital, a private equity investment firm that would strengthen the company's finances.
"We are pleased to have reached an agreement that will ensure a long and prosperous future for these iconic New England restaurants," said Corey Wendland, chief financial officer in a press release
. "For some time, we have been pursuing a plan to strengthen our financial footing and secure capital for investment in our restaurants, while also addressing our significant debt load. We are confident that the agreement with Wynnchurch achieves all of those goals."
At the same time, the company has filed for Chapter 11 bankruptcy protection as it pursues the sale, which will include soliciting competitive bids under Chapter 11 rules. The court would have final determination on the sale. Wendland said t his would allow PGHC to invest in its current restaurants and expand.
Numerous media sources reported Sunday that a third of the company's 150 restaurants were closed as well as another 45 or so D'Angelos Grilled Sandwiches Restaurants. In all, PGHC said it closed 95 "underperforming" restaurants in total. Another 100 Papa Gino's and 78 D'Angelos will remain open.
The first Papa Gino's opened in 1961 in East Boston; it is now headquartered in Dedham. It is the official pizza of the New England Patriots and the New England Revolution.