Financing

Cosi files for bankruptcy protection, has closed 30 units

It’s the fast-casual chain’s second Chapter 11 filing since 2016.
cosi chicago
Photograph courtesy of Cosi

Fast-casual chain Cosi filed for Chapter 11 bankruptcy protection Tuesday, its second such filing since 2016.

The Boston-based soup and sandwich brand closed 30 units in December as part of a restructuring effort and said it is boosting its catering program “to better align with current customer dining trends,” according to a statement.

The filing comes two months after the company put itself up for sale. It also comes four years after it previously filed for bankruptcy protection.

Cosi owes $30.7 million in secured debt. Cosi owns 13 restaurants, with 16 franchised units and three catering kitchens, according to the report.

At the end of 2008, Cosi operated 151 stores.

Further restructuring will including “shedding of certain legacy costs, further business streamlining and, possibly, select location moves,” the company said.

Cosi has hired Jason Fensterstock as chief restructuring officer, to develop and implement further cost-cutting plans.

The chain is slated to open new locations during the first half of the year.

Cosi previously filed for bankruptcy protection in 2016 and exited in 2017 after being purchased.

Its U.S. system sales fell nearly 10% in 2018, according to Restaurant Business sister company Technomic.

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