SALT LAKE CITY — One of the state’s popular family restaurant chains is filing bankruptcy and has closed several Wasatch Front locations.
The company that owns Village Inn closed five of its Utah locations this week in the wake of the court filing.
American Blue Ribbon Holdings LLC reported Monday the company had filed a petition for Chapter 11 protection with the U.S. Bankruptcy Court of Delaware. Upon approval, the filing will allow the company to continue operation of its businesses and service to its customers as it works through its plan of reorganization, a news release states.
The reorganization is expected to facilitate plans to enhance the financial health of the Village Inn and Bakers Square restaurant brands as well as support efforts to that would be most beneficial for all stakeholders, the statement added.
Village Inn had operated restaurants in 14 locations throughout the state. According to the company’s website, Village Inn has closed five “underperforming” stores in Roy, North Salt Lake, Orem, Sandy and West Jordan. Nationwide, the company is closing a total of 33 locations considered to be underperforming.
The company obtained financing to provide liquidity during the reorganization process as it works to determine strategies that will help sustain long-term viability for the chain in the future, according to a news release.
“We believe that these efforts will allow the company and the businesses to maximize their value for the benefit of all stakeholders, including customers, employees and creditors,” the statement says.
The company website shows that Village Inn currently has locations in 20 states across the country as well as one in Guam.