National restaurant chain Corner Bakery has declared bankruptcy. The company, which is headquartered in Dallas, sought Chapter 11 protection in the Delaware Bankruptcy Court on Feb. 22, according to Nation’s Restaurant News.
In October 2020, Corner Bakery was purchased by Philadelphia restaurant company Pandya Restaurant Growth Brands, which also owns Boston Market. At the time, there were 175 locations in the Corner Bakery portfolio. The company’s website shows there are currently 140 locations throughout 20 states.
Frank Paci, Corner Bakery’s CEO at the time it was sold, said the acquisition gave the company “access to resources that we need to continue to operate our business in this challenging environment.” He said the company “is now well-positioned to achieve future success during a period of unprecedented disruption for our industry.”
According to Restaurant Business, Corner Bakery defaulted on its loans last year after struggling with weakening sales and declining unit volumes, which started before the pandemic. The pandemic exacerbated those issues since in-office workers made up a significant portion of its customer base.
Before it was sold to Pandya, Corner Bakery was owned by private equity firm Roark Capital Partners. Prior to that, the chain was part of Dallas-based Brinker International Inc. — owner of Chili’s and Maggiano’s Little Italy.
