Saladworks, which boasts more than 100 restaurants and opened its first location at the Cherry Hill Mall in the late 1980s, filed for Chapter 11 bankruptcy protection Tuesday as a result of internal disputes, according to court documents and published reports.
The company, based in Montgomery County, Pennsylvania, is seeking a buyer as a result of long-running control disputes between minority shareholder Vernon Hill II and founder John Scardapane, reports say.
According to the Wall Street Journal, the company wants to expand beyond their 149 franchise locations. However, they have been unable to due to pending litigation from Hill, who in 2013 sought to have the company buy back his 30 percent stake in the company that came following a $7.75 million investment in 2008.
The bankruptcy filing lists Saladworks assets and liabilities of between $10 and $50 million. The company posted sales of nearly $80 million for 2014 and, according to court documents, owes more than $10 million to two companies helmed by Hill.Read the Full Article