Tag Archives: Chapter11

Sandwich Shop Uses Chapter 11 Bankruptcy to Save its Business

Chapter 11 bankruptcies can act as a lifeline for struggling businesses, allowing them to remain open while finding ways to refinance debts and restructure. Take for example the case of 100 Montaditos, a chain of Spanish sandwich shops that recently emerged from Chapter 11 bankruptcy. According to the press, the Chapter 11 bankruptcy only affects U.S. locations, and the company has 350 eateries worldwide. The sandwich chain allegedly ran into money problems while executing a plan to expand into Florida and New York. With $20 million in debt and lackluster demand, the company found itself unable to make loan payments. After reaching an agreement with its creditors, the company has closed 10 of its U.S. locations. Even though the company is closing 10 of its locations, many are remaining open. Instead of shutting down completely, the company has reorganized its debts and remained in control of operations. This story serves…
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