CONCORD, Calif.--(BUSINESS WIRE)--Round Table Pizza, Inc. will emerge from bankruptcy next week following confirmation of the Consensual Plan of Reorganization on December 12 by the U.S. Bankruptcy Court in Oakland, California. The company filed for Chapter 11 protection in February of this year.
The plan provides for 100% repayment of obligations to its secured and unsecured creditors and for its employee owners to retain 100% ownership of the company. The company is 100% employee owned with ownership spread among 2,500 current and former employees. According to the company’s bankruptcy attorney Scott McNutt, “It is unusual, maybe unique, for a company to emerge from Chapter 11 in ten months, pay all creditors 100% and preserve equity. The company’s successful reorganization is a testament to the strength of the Round Table Pizza brand and to management’s restructuring efforts and relentless focus on retaining ownership for its employee owners.”
During 2011, the company successfully renegotiated leases, closed 22 unprofitable stores, and improved profitability in its base business. The system continues with approximately 450 franchised and company-owned restaurants operating in the western U.S.
CEO Rob McCourt said: “This reorganization was made possible by the strength of our franchisees and the commitment of our employees. Their collective efforts significantly improved our operating cash flow and overall business results. It’s an important turning point for us.”
McCourt expects the company’s operating EBITDA in 2011 to increase 70% over the previous year. In November, company-owned restaurants completed their seventh consecutive month of sales increases.
Looking ahead, the company plans to open 10 new domestic locations in 2012 and recently signed a development agreement to open 20 restaurants in Vietnam. The first restaurant under this agreement is scheduled to open in Ho Chi Minh City in the first quarter of 2012. The company currently is in negotiations with strong partners in other parts of Asia.
Round Table is known by generations of west coast families for its quality fresh ingredients and innovative toppings, which accounts for its signature tagline, “The Last Honest Pizza,” describing its commitment to quality and authenticity. Round Table will add to its lineup of great tasting pizzas with the introduction of its new Triple Play Pepperoni pizza, with the tag line “Three kinds of pepperoni, all kinds of flavor;” advertising begins December 26th.
About Round Table Pizza
Headquartered in California’s San Francisco Bay Area, Round Table Pizza was founded by Bill Larson in 1959 to create a place where families could relax and share a superb pizza. Over fifty years later, Round Table Pizza remains true to its founder’s vision with 450 restaurants across the western United States.