PGHC Holdings, the parent company of Papa Gino’s and D’Angelo Grilled Sandwiches, on Wednesday said it has received bankruptcy court approval to sell its business to private-equity firm Wynnchurch Capital.
The $20 million deal, which had been agreed to before Papa Gino’s filed for bankruptcy protection in November, is set to close at the end of the month.
Wynnchurch acquired the company’s debt over the summer and reached a deal to buy the chains, having replaced PGHC’s board of directors with Thomas Allison, a restructuring expert.
PGHC has said that the deal would strengthen the chains’ financial resources and enable them to remodel 141 company-owned restaurants throughout New England and improve their online ordering capabilities.
“Wynnchurch’s investment will enable us to renew our legacy as a community-focused restaurant company,” Corey Wendland, PGHC’s chief financial officer, said in a statement.
Papa Gino’s filed for bankruptcy protection after abruptly closing more than 90 locations. The company had more than $100 million in total debt and laid off 1,100 workers.
The company blamed a host of issues for the filing, including rising minimum wages, price competition, shifting tastes and its own debt.
The closures left Papa Gino’s with nearly 100 restaurants, down from 155 locations at the end of 2016. That total includes franchisee locations unaffected by the bankruptcy filing.
D’Angelo, meanwhile, has 78 locations. It peaked at 139 locations at the end of 2017.