News

Cosi goes private to avoid bankruptcy

May 15, 2017

Cosi is clawing its way out of bankruptcy. It announced Friday that a Chapter 11 First Amended Joint Plan of Reorganization, which the U.S. Bankruptcy Court for the District of Massachusetts (Eastern Division) confirmed last month, took effect on May 10.

The company has now emerged from bankruptcy as a private company, according to a press release.

The restructured entity is now owned by MILFAM II L.P., AB Value Partners, LP, AB Value Management LLC and AB Opportunity Fund LLC.  

"We have an energized team, a much stronger capital structure and a solid base of restaurants," said Vicki Baue, a company vice president. "A number of initiatives are underway, with a focus on delivering outstanding guest experiences and improving quality and execution.

"We would like to thank all of our customers, employees, franchisees and vendors who continued to be a part of Cosi through this phase, and we are excited about this next chapter of Cosi history." 

Last year, the chain filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Massachusetts.