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VICORP Closing 56 Village Inn / Bakers Square Restaurants and Files Chapter 11

VICORP Could Close More Restaurants as it Analyzes Underperformers
By Sasha M Pardy
April 4, 2008 | 8:04 P.M.

Denver-based VICORP restaurants, operator of 343 restaurants in 25 states under brands Village Inn and Bakers Square, filed a voluntary chapter 11 petition on April 3rd. The company listed assets in the range of $100 million to $500 million in the filing. VICORP, which has operated restaurants since 1958, explained in a press release, "The recent economic slowdown, combined with substantial increases in operating costs, has seriously impeded the ability of VICORP to generate results similar to those historically achieved by the company." Simultaneously, VICORP announced it would close 56 restaurants (locations not disclosed) and added that part of the reorganization process will be to analyze underperforming locations to determine if they should remain open. VICORP's restaurant portfolio includes 93 owned by franchisees, which are not affected by the bankruptcy filing.

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