A well-known, Boston-based purveyor of flatbread sandwiches and other casual lunch delights filed for bankruptcy this week.
Cosi, Inc. made the filing Wednesday in order to restructure its balance sheet and begin a sale process, Forbes reported. The company saw a series of losses after an expansion, as well as lackluster consumer interest in some new menu changes.
As of mid-year, the chain operated 74 company-owned restaurants and had 31 franchised in 15 states and internationally.
The publicly-traded company employs 1,100 people, listed $31.2 million in assets and $19.8 million in debts, according to its bankruptcy information obtained by USA Today.
The chain reportedly said that it closed closed 29 of its 74 company-owned locations, in effect cutting 450 jobs in recent days. Its 31 franchised restaurants will remain open, according to USA Today.
“This was a difficult step, but it was necessary to address our liquidity issues," interim CEO Patrick Bennett, Sr. said in a statement.
"Cosi’s core business and franchise base remain intact, and we filed with the liquidity resources necessary to carry out the restructuring plan. We believe this process will allow the company to right-size its balance sheet, reduce its debt, and focus on improving the business and stabilizing the brand."
The company was first started in Paris in 1989, but was bought in 1996 and expanded to the United States, opening its first stateside location in New York City.