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Cosi files for bankruptcy protection — again

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February 25, 2020

Cosi Inc. has filed for Chapter 11 bankruptcy protection and closed 30 stores. It's the second bankruptcy filing since 2016 for the Boston-based fast casual restaurant founded in 1998.  According to court documents, the chain filed in the U.S. Bankruptcy Court for the District of Delaware, with assets and liabilities between $10 and $50 million. 

Cosi started restructuring operations in December, 2019 by closing 30 units and said in a company press release that it was increasing its emphasis on catering. These efforts were to "better align with current customer dining trends, further improve guest experiences and enhance its financial performance, according to the release, which said that 2020 was off to a good start with the brand seeing sales increases from in-store dining restaurants as well as the catering business.

The 13-unit brand, which once had more than 155 units in the 1990s and just over 72 when it first filed for protection in 2016, has retained a chief restructuring officer, Jason F. Fensterstock, to assist with the implementation of its business plan, according to the release. He will be involved in cost-cutting initiatives, which are underway but also include the opening of several locations in the first half of 2020.

Cosi emerged from its 2016 bankruptcy status in 2017 when it was purchased by MILFAM II L.P., AB Value Partners, LP, AB Value Management LLC and AB Opportunity Fund LLC.  

As of press time, Cosi had not returned Fast Casual's inquiries regarding the number of locations still in operation and what leadership changes — if any — would be made.