Introduction
Corner Bakery, a popular chain of cafes and restaurants, has recently declared bankruptcy. The company, which has been in business for over 25 years, has been struggling financially due to the pandemic and other factors. This has led to the closure of many of its locations and the filing of Chapter 11 bankruptcy. This article will discuss the reasons behind the bankruptcy filing, the impact it will have on the company and its employees, and what the future may hold for Corner Bakery.
Corner Bakery Declares Bankruptcy
The popular bakery chain, Corner Bakery, has declared bankruptcy. The company, which has been in business for over 20 years, has been struggling to stay afloat in the face of rising costs and declining sales. The company has been unable to keep up with the competition and has been unable to make a profit in recent years.
The company has been struggling to stay afloat for some time, and the decision to declare bankruptcy was a difficult one. The company has been unable to make a profit in recent years, and the rising costs of ingredients and labor have been too much for the company to bear. The company has been unable to keep up with the competition, and the decision to declare bankruptcy was the only option.
The company has been trying to restructure its operations in order to stay afloat, but the efforts have not been successful. The company has been unable to make a profit in recent years, and the rising costs of ingredients and labor have been too much for the company to bear. The company has been unable to keep up with the competition, and the decision to declare bankruptcy was the only option.
The company has been trying to restructure its operations in order to stay afloat, but the efforts have not been successful. The company has been unable to make a profit in recent years, and the rising costs of ingredients and labor have been too much for the company to bear. The company has been unable to keep up with the competition, and the decision to declare bankruptcy was the only option.
The company has been trying to restructure its operations in order to stay afloat, but the efforts have not been successful. The company has been unable to make a profit in recent years, and the rising costs of ingredients and labor have been too much for the company to bear. The company has been unable to keep up with the competition, and the decision to declare bankruptcy was the only option.
The company has been trying to restructure its operations in order to stay afloat, but the efforts have not been successful. The company has been unable to make a profit in recent years, and the rising costs of ingredients and labor have been too much for the company to bear. The company has been unable to keep up with the competition, and the decision to declare bankruptcy was the only option.
The bankruptcy filing will allow the company to restructure its operations and debts, and the company is hopeful that it will be able to emerge from bankruptcy in a stronger position. The company is also hopeful that it will be able to continue to serve its loyal customers and provide them with the same quality products and services that they have come to expect from Corner Bakery.
The past few years haven’t been particularly kind to bakery-café chain Corner Bakery. The brand, which was once deemed a worthy rival to Panera, saw a drop in sales during the pandemic and has struggled to regain its footing ever since. Unfortunately, the gradual decline resulted in Corner Bakery filing for bankruptcy last week.
The chain’s store count also seems to have been on the decline. It operated 175 units in the U.S. in 2019, according to Technomic, but the data company ScrapeHero reported that only 140 remain as of February 2023.
The Chapter 11 filing comes as an attempt to block creditors from seizing control of the company. Court documents show that SSCP Restaurant Investors acquired the chain’s reported $33.8 million in secured debt and began making moves to take over Corner Bakery, spurring the bankruptcy filing, according to Restaurant Business.
Corner Bakery refutes that its debt is that high, instead saying that the figure falls between $20 million and $24 million. Whatever the chain does owe, the protections the company filed for would allow it to continue operating while it makes a reorganization plan to hopefully repay its debts and keep the business afloat.
The chain defaulted on its loans last year, and said that its “underperforming” stores have weighed down the company, according to Restaurant Business.
In 2020, the company reportedly began making efforts to restructure its debt and brought in restructuring and financial advisors to explore strategic options.
Even before the pandemic, Corner Bakery was never quite able to achieve the same levels of popularity and success as its biggest competitor Panera Bread. Panera topped a list of the highest-grossing bakery-café chains in the U.S. in 2019, the year before the pandemic began, while Corner Bakery came third behind second-place Einstein Bros. Bagels.
Corner Bakery is not the only bakery-café chain that has struggled since the start of the pandemic. For example, Aurify Brands rescued Le Pain Quotidien and Maison Kayse from bankruptcy by acquiring both brands in 2020. But with many workers and companies making the shift to remote work, only time will tell if Corner Bakery can truly recover.
Corner Bakery was contacted for comment did not immediately respond.
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Zoe Strozewski