Gigi’s Cupcakes, Mr. Gatti’s Pizza Franchises Declare Bankruptcy
Gigi’s Cupcakes, Mr. Gatti’s Pizza Franchises Declare Bankruptcy

The franchise brands affiliated with Texas-based private equity firm FundCorp filed for Chapter 11 bankruptcy protection last week.

Gigi's Cupcakes and Sovrano LLC, owner of Mr. Gatti’s Pizza, have both filed for Chapter 11 bankruptcy, according to a report in Nation’s Restaurant News.

Both chains are affiliates of FundCorp, a private equity group based in Fort Worth, Texas. According to the article, Gigi’s bankruptcy filing petitioned to have its case joined with Sovrano. FundCorp bought the 96-unit cupcake chain in 2016, at which point the franchise brand relocated from its Nashville base to Texas. In the filing, Gigi’s listed liabilities ranging from $1 million-$10 million.

Sovrano purchased Austin, Texas-based pizza chain Mr. Gatti’s in 2015, and has since grown the brand to nearly 100 units. Sovrano listed liabilities ranging from $10 million-$50 million.

Read the full story here.

Photo courtesy of Gigi’s Cupcakes on Facebook.

ADVERTISEMENT