A POPULAR bakery chain has filed for bankruptcy, putting its 140 stores at risk of closure.
Embattled retailer Corner Bakery, which was once considered a rival to Panera Bread, has more than $30million of debt and struggled with rising costs post-pandemic.
The company has stores across the country but bosses have said that its underperforming outlets have “burdened” the firm, per Restaurant Business.
Execs have claimed that landlords have also become “increasingly impatient.”
Office employees flocked to Corner Bakery outlets in droves, but business has dried up as major firms rolled out work-from-home measures during Covid.
Officials filed for Chapter 11 bankruptcy last week and the company has debts of around $33.8million.
But, the figure is disputed as chiefs have claimed that it owes between $20million and $24million.
The company defaulted on its loans last year, Restaurant Business revealed.
Company officials hope that filing for bankruptcy protection can help secure the company’s future.
Corner Bakery was founded in Chicago, Illinois, in 1991 and specializes in breakfast dishes, pastries, breads, and gourmet sandwiches.
The company has more than 140 outlets, more than 40 of which are located in California.
Corner Bakery also has a presence in Texas, Colorado, Pennsylvania, Utah, Virginia, Maryland, DC, and Georgia.
Meanwhile, Panera Bread has more than 2,000 locations across the US and Canada.
Corner Bakery is not the only restaurant chain that has faced financial struggles.
The U.S. Sun reported in January that Red Lobster has closed eight of its restaurants for good.
The shutdowns happened over the past three months as part of a regular review.
Restaurants in Syracuse, New York, and Albemarle County, Virginia, were among those that went to the wall.
Eateries in St. Louis, Beachwood, Ohio, San Angelo, Texas, and Oakhurst, New Jersey, have also ceased trading.
Red Lobster closed down restaurants in Naples, Florida, and Danville, Virginia.
The company revealed that it lost $15.3million in the third quarter of 2022 – higher than the owner’s forecast of negative $10.4million.
In 2021, Red Lobster had around 670 outlets across the country.
And, the restaurant 94th Aero Squadron in Columbus, Ohio, will close its doors after more than four decades of business.
The eatery will close its doors on June 18 but its owners have said they intend to “go out with a bang.”
Meanwhile, The U.S. Sun has also reported on how the retail apocalypse has impacted and continues to affect popular chains.