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Potbelly returns $10M from PPP

Provided

April 27, 2020

Potbelly Corporation is returning the $10 million it received from the Payroll Protection Program. The company put out a statement Saturday saying that although its sales dropped dramatically when COVID-19 hit, forcing it to furlough employees, close shops, and cut salaries at all levels of the organization, the 450-unit chain is returning the money after learning that funding had run out before many small businesses had a chance to apply.

"We were surprised and disappointed when the fund was quickly exhausted, leaving many without help," the statement said. "We are returning the PPP loan after further clarification from the Treasury Department. We will continue to seek alternatives to help support our employees and enable them to return to work so they can serve our loyal customers."

Since opening its first shop in Chicago in 1977, Potbelly has more than 400 company-owned shops in the United States, franchisees operate over 40 shops in the United States.

Shake Shack announced on April 19 that it was returning its PPP funding, and Ruth Chris Steakhouse followed.

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