It's been a rough past few days for fans of Papa Gino's.
Customers and employees alike were shocked to learn that dozens of locations around Massachusetts and New England had closed their doors over the weekend, leaving some to wonder if the popular pizza chain was going out of business. Thankfully, Papa Gino's isn't completely shutting down its operations, but some major changes are in store for the Dedham-based brand.
Is Papa Gino's going out of business?
Photo by Papa Gino's via Facebook
According to a press release, PGHC Holdings Inc., the parent company of both Papa Gino's and D'Angelo Grilled Sandwiches, has reached a principle agreement to sell the company to Wynnchurch Capital, a private equity investment firm. As part of the proposed sale, PGHC Holdings Inc. has filed for Chapter 11 bankruptcy and has "taken important steps to address the debt structure and focus its financial resources."
Unfortunately, the shake-up has led to the closing of "approximately 95 under-performing restaurants," in an effort to focus resources on the company's "best-performing restaurants."
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"These were hard decisions but decisions we believe were absolutely necessary to allow Papa Gino's and D'Angelo Grilled Sandwiches to continue serving New England now and for years to come," Chief Financial Officer Corey Wendland said in the release. "We look forward to serving our guests the pizza and grilled sandwiches they have come to love over many decades. If your nearest Papa Gino's or D'Angelo has closed, be assured that your favorite pizza or Steak Number 9 sandwich awaits you at a re-energized restaurant not too far away."
According to the release, the changes will allow for PGHC Holdings Inc. to remodel and modernize the various locations still open around New England, as well as "enhance its online ordering capabilities." For now, 100 Papa Gino's restaurants and 78 D'Angelo Grilled Sandwiches restaurants will "continue to operate and remain open for business," and PGHC Holdings Inc. hopes to move certain team members affected by the various closings to other restaurants that are still open.
"We recognize we have a responsibility to not only provide for the future of these businesses, for our valued team members and guests, but to also ensure our current debt structure is sufficiently addressed," said Wendland. "We believe this process will allow us to do just that and build an even better company for all of our team members by creating an atmosphere that team members will be proud to serve in. PGHC will continue its long tradition of hosting birthday parties, team celebrations and other neighborhood events as well as serving delicious favorites like Papa Gino's famous 3-Cheese Pizza or a D'Angelo Steak & Cheese."