Saladworks files for Chapter 11
Pennsylvania-based Saladworks LLC announced it has filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware to address pending litigation and facilitate a sale or restructuring transaction.
The company expects that normal day-to-day operations will continue during the Chapter 11 reorganization. The brand is currently operating more than 100 locations both domestically and internationally, with more than 80 units in development.
No other Saladworks locations or affiliates are included in the filing and all of the Saladworks locations will continue to operate. Saladworks intends to conduct business as usual as it continues its efforts to restructure its balance sheet.
Saladworks has determined that the best way to maximize value for its stakeholders is through a sale or recapitalization. To ensure the most efficient process possible and to optimize the potential results for all parties, the company has determined to conduct its restructuring process under the supervision of the U.S. Bankruptcy Court.
The company has sought immediate relief from the Bankruptcy Court to smooth its transition into Chapter 11 and ensure minimal disruption of its operations, including paying certain claims of employees and others. Additionally, suppliers will be paid for goods and services after the filing date in accordance with existing terms and contracts. Through the Chapter 11 filing, Saladworks will maintain continuity for its franchisees, customers, employees and business partners as it conducts discussions with potential transaction partners to maximize the outcome for all stakeholders.
"Saladworks has been an industry leader for 29 years and I am very proud of our achievements, which is a testament to the quality of our food, the strength of our brand, our franchise partners and of course, the loyalty of our customers," said John Scardapane, Chairman and CEO of Saladworks LLC in a company press release. "This process is the best way to maximize value for our franchisees as well as other stakeholders and allow our operations to emerge from bankruptcy quickly. Saladworks will continue to provide customers with innovative, fresh and healthy dining options."
Under the bankruptcy process, a transaction is subject to the execution of definitive documentation, court approval and other customary conditions. Interested parties will have an opportunity to conduct thorough due diligence and submit offers under terms and conditions established by order of the Court.
The Company will provide additional details with respect to the Chapter 11 filing as soon as they are available. More information, including access to court documents, can be accessed at the court-appointed claims agent site, www.upshotservices.com/Saladworks or the official Bankruptcy Court website, www.deb.uscourts.gov.