GIORDANOS FILES CHAPTER 11 (bankruptcy protection)

[Mick.Chicago]

I posted this in the news section also but still....

I blame expansion.

Giordano’s — a name synonymous with Chicago-style pizza — filed Wednesday for Chapter 11 bankruptcy protection.

Judge Eugene R. Wedoff granted the company’s request to maintain its bank accounts and operations in order to limit disruptions at the popular operation.

Giordano’s operates six company-owned stores in the Chicago area, four joint-venture stores and 35 franchised locations, according to a petition Giordano’s Enterprises filed in U.S. Bankruptcy Court in Chicago. Locations include restaurants in Plainfield, Joliet and south Naperville.

It also operates Americana Foods Inc., a commissary business responsible for most of the food products bought by the Illinois locations. Its real estate arm, Randolph Partners LP, owns 12 restaurant buildings leased to four of the company-owned locations, two of the joint-venture locations and six of the franchised locations.

Owners John and Eva Apostolou could not be reached for comment.

The Apostolous bought the company in 1988 and began expanding to Florida in 2005.

[vcb]

The economy sucks, but I wouldn't make a big deal out of this.

Companies go into strategic bankrupcty reorganization all the time to improve their cashflow.
Ask Donald Trump and Pizzeria Uno.

I would agree that expansion sometimes is a cause.

I'm more of a fan of Pizzeria Uno and Lou Malnati's deep dish and not so much a fan of stuffed pizza, which Giordano's specializes in. Though not known for it, Giordano's has a pretty decent thin crust.

[BTB]

I agree that this bankruptcy can be a strategic move to improve their cashflow.  They basically have a good product, although I favor the likes of Original Uno's, Pizano's, Malnati's, etc. over it somewhat.  I do, however, most often blame over-expansion as a key cause of an organizations' undoing. Witness the discredited nationwide Uno's Chicago Grill as well as many other businesses. And from the description of the cobweb of ownership arrangements, it sounds like Giordano's has some goofy organizational issues.
 
When I've taken neighbors and guests to the Tampa Giordano's location, I generally ordered both some thin crust and some deep dish stuffed pizza.  The overwhelming favorite has been the stuffed pizza and the thin crust was so much less used or eaten that I no longer order one.  When diving up the spoils after dinner (i.e., boxes of remaining pizza pieces) most reach for the stuffed pieces as opposed to the thin crust ones.  But once in a while a thin crust hits the spot like this one.
                                                                                               --BTB

[Mick.Chicago]

haha, sorry, I'll try but I'm not too 

If a mod would like to, by all means.

[lilbuddypizza]

I remember back in 85-86, Giordano's were springing up everywhere.(I think we had two in Champaign,IL alone.) I believe this brought on financial difficulties because then a bunch closed and may have led to the owners selling to the Apostolous. Say what you will, it is an original. Luckily in Chicago, many former employees open their own rip-off joint and there is no difference(except price).

[melspring1]

I would appear possible that like a lot of businesses of this type the family-owners sucked enough $$ out of the enterprise that they're not weeping.  Too bad for many of their suppliers who are getting screwed in this process:

According to the filing, major unsecured creditors include Saputo Cheese USA, with a claim of $426,678; Bartlett-based Greco & Sons Inc., with a claim of $213,694; Giordano's Advertising Fund, with a claim of $150,777; Heinz North America, with a claim of $131,801; and Tardella Foods Inc., with a claim of $29,963.