Round Table Pizza Inc. filed for Chapter 11 bankruptcy but company executives say the filing won't affect the chain's 470 franchise- and company-owned stores in Alaska, Arizona, California, Hawaii, Nevada, Oregon and Washington just yet. The Concord, California-based company said the filing was necessary to improve the company's competitiveness during a period of slow economic recovery. Despite recent improvements in business performance and expense reductions, the company listed debts ranging from $10 million to $50 million and pointed to an ill-timed expansion that was nullified by the recession.
Round Table president and CEO, Rob McCourt, said "Round Table remains open for business and fully operational, and we will continue to serve our customers 'The Last Honest Pizza.'" The filing is not expected to impact Round Table's 148 franchisees that operate 355 independently owned units on the West Coast. The company has said it will close some company-owned restaurants that are unprofitable, but added that most company-owned locations and all franchised locations will remain open, hopefully with minimum impact on consumers.
"Our company has experienced consistent growth and management has been responsive to the difficult economic environment," said McCourt, and added, "Unfortunately, we are compelled to take further steps, including this reorganization plan, to meaningfully address the high cost of our capital and above-market leases." McCourt also said Round Table would continue to communicate with employees, franchisees, vendors and other critical audiences throughout the reorganization process, which is expected to take up to a year.