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