Pizza Restaurant Chain Announces Pre-Arranged Reorganization Plan; Selects 18 Leases for Cancellation
Uno Restaurant Holdings Corp. filed for bankruptcy protection on Jan. 20, 2010.
The company said it posted a $22.2 million net loss in 2009. The company's CFO commented, "As the national economy suffered and consumers cut discretionary spending, Uno experienced a significant decline in sales. Reduced sales, coupled with increased structural costs, including the cost of key commodities, such as energy, wheat, and cheese, negatively impacted cash flow. Accordingly, Uno's ability to invest in its brand and its operations became impaired, and it became increasingly difficult to support its existing capital structure."
Uno announced a pre-arranged reorganization plan that would recapitalize the company and eliminate substantial debt by converting $142 million of senior notes into a controlling equity stake. Additionally, the company has secured a $52 million debtor-in-possession facility from Wells Fargo Capital Finance. The company intends for the recapitalization to allow Uno to "invest in its growth opportunities" for its core businesses, Uno Chicago Grill, Uno Dué Go, Uno Express and Uno Foods Consumer Products Business.
Boston-based Uno announced its 65th anniversary on October, 20 2009 -- at the time, the company said it boasted 200 locations worldwide. In the bankruptcy announcement, however, Uno said the chain is currently comprised of 99 company-owned and 80 franchised full-service Uno Chicago Grill units in 28 states, the District of Columbia, Puerto Rico, South Korea, the United Arab Emirates, Honduras, Kuwait, and Saudi Arabia. Additionally, Uno opened 160 new Uno Express restaurants between summer 2008 and November 2009. The small-format units are designed for sports arenas, airports, tourism centers, universities and other similar venues.
In February 2005, private equity company Centre Partners acquired a controlling interest in Uno, with intentions to grow the company into a chain of comparable size to Applebee's.
Initially, Uno did not disclose any intentions to shutter any restaurants, saying customers should expect "business as usual." After evaluating its 99-property portfolio of retail leases, Uno selected 18 underperforming restaurant locations. According to case documents, Uno experienced a total of $1.3 million in operating losses associated with these leases in Fiscal 2009. The company determined that cancelling the following 18 leases was the best option. Its standard restaurants are 3,000 to 7,000 square feet, while its Uno Due Go restaurants are 500 to 3,000 square feet and Uno Express restaurants are 100 to 1,000 square feet.
This article appears in CoStar's Retail News Roundup: January 17-30, 2010
| Company || Address || Affected Parties || Comment |
| Uno || 214 Huttleston Ave, Fairhaven, MA || TMI Properties, Fairhaven || exp. 8/31/2022|
| Uno || 552 Broadway, Rte 28, Methuen, MA|| Robert's Catering Service, Inc. || exp. 4/30/2018|
| Uno || 391 Sixth Ave, New York, NY || David I. Berley || exp. 3/31/2012|
| Uno || 180 Deming St, Manchester, CT|| Circle Associates || exp. 4/30/2015|
| Uno || 1875 S Willow St, Manchester, NH || Cohas Brook Shopping Center, LLC || exp. 5/15/2010|
| Uno || 342 Winchester St, Keene, NH|| Riverside Improvements || exp. 2/29/2020|
| Uno || 7272 Wisconsin Ave, Bethesda, MD || 7272 Wisconsin Building Corp. || exp. 3/31/2010|
| Uno || 21035 Dulles Town Center, Sterling, VA|| Dulles Town Center Mall, LLC || exp. 7/12/2020|
| Uno || 1101 Shoppers Way, Largo, MD || Inland US Management LLC || exp. 10/31/2018|
| Uno || 10107 Southpoint Pky, Fredericksburg, VA|| Southpoint II, LLC || exp. 6/30/2021|
| Uno || 15525 Olive Street Rd, Chesterfield, MO || Chesterfield Hilltown, Inc. || exp. 3/31/2011|
| Uno || 777 E Merrit Island Causeway, Merrit Island, FL || Glimcher Merritt Square LLC || exp. 2/28/2021|
| Uno || 693 Sunrise Hwy, Lynbrook, NY || Rupp LLC || exp. 10/31/2011|
| Uno || 11110 Mall Circle, Waldorf, MD|| Angel/Nancy Luppino || exp. 1/31/2010|
| Uno || 794 S Atlantic Ave, Ormond Beach, FL || Richard P. Jaffe || exp. 12/12/2014|
| Uno || 4120 E Colonial Dr, Orlando, FL|| Greater Orlando Aviation Authority || exp. 9/30/2013|
| Uno || 4125 Maple Rd, Amherst, NY || Wee Willie Winkle LLC/HREUNO Acquisition LLC || exp. 9/30/2025|
| Uno || 9310 Sheridan Blvd, Westminster, CO|| Galileo Westminster || exp. 6/30/2016|
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