UFood Grill Announces Reorganization
UFood Restaurant Group, Inc. and its wholly owned subsidiaries (the "Company") filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Massachusetts in order to preserve its operations and to resolve its liquidity issues in the face of the slow recovery from the current economic downturn. Other members of the UFood group (including its affiliates and franchised stores in Massachusetts, Ohio, Texas, Utah and Maryland) have not filed for protection.
The Company's financial troubles stem from a number of factors that prevented the anticipated growth and caused some of the Company's stores to be unprofitable for a significant period of time resulting in the Company's current liquidity problems.
The Company will pursue a plan of reorganization to capitalize on opportunities for future growth and profitability including the evaluation of any underperforming stores, strengthening its brand strategies and the restructuring of its financial obligations along with the strengthening of its balance sheet and capital structure.
The Company has obtained a financing facility that is likely to be sufficient to support it during the chapter 11 process and the Company's restructuring plan has the support of its lenders.
Day to day operations and business will continue throughout the country as the Company continues to provide its customers with the highest quality and healthiest food at the most reasonable price.
The Chapter 11 process will provide the Company with the opportunity to restructure its finances and execute on its business model to provide sustainable profits and long-term growth.
The Company looks forward to continuing its relationships with its customers, vendors and franchisees in the process of shaping the long term success of the UFood brand.
Any questions should be directed to the Company's attorney, Thomas H. Curran, at McCarter & English, LLP, 265 Franklin St., Boston, MA 02110, or via telephone at 617.449.6500
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 involving known and unknown risks, delays, and uncertainties that may cause our actual results or performance to differ materially from those expressed or implied by these forward-looking statements. These risks, delays, and uncertainties include, but are not limited to: risks associated with the uncertainty of future financial results, our reliance on our sole supplier, the limited diversification of our product offerings, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements.
UFood Restaurant Group, Inc.
Thomas Curran, 617-449-6500