Saladworks files for bankruptcy, will seek buyer
In documents filed with U.S. Bankruptcy Court in Delaware, Saladworks lists more than $10 million owed to two companies controlled by Vernon Hill, the Commerce Bank founder who has owned a 30 percent stake in Saladworks since 2008. Those claims, however, are listed as disputed and are subject to ongoing litigation.
The company said it had been looking for potential buyers since 2013, but the litigation between the companies controlled by Hill and majority owner J Scar Holdings have scared away interested parties. It's also keeping away franchisees, some of whom are holding off on opening new restaurants until the dispute is resolved, the company said.
Last month, the company said it hopes to open 17 new restaurants this year, including one in Qatar.
Saladworks' revenue comes mainly from franchisee fees, royalty payments and the sale of food to restaurant operators, the company said.
"Saladworks has been an industry leader for 29 years and I am very proud of our achievements, which is a testament to the quality of our food, the strength of our brand, our franchise partners and, of course, the loyalty of our customers," John Scardapane, chairman and CEO of Saladworks LLC, said in a statement. "This process is the best way to maximize value for our franchisees as well as other stakeholders and allow our operations to emerge from bankruptcy quickly."
Source: mcall.com
