The company, known for its homemade flat bread, has assets of $31.24 million and debt of about $20 million, according to a court filing.
Cosi Inc., announced today that it has filed for bankruptcy, closed 40 percent of company-owned restaurants and is up for sale. The move comes just one month after Cosi terminated CEO R.J. Dourney, following the company’s statement that it would not generate positive cash flow in the third quarter as it had anticipated.
Cosi has recorded operating losses of $15.5 million, $15.8 million and $11.5 million in the past three years, respectively. The constant losses have forced the company to change CEOs, explore sales processes and undertake complex stock transactions just to stay afloat.
“This was a difficult step, but it was necessary to address our liquidity issues,” Patrick Bennett, interim CEO of Cosi, said in a statement. “We believe this process will allow the company to right-size its balance sheet, reduce its debt, and focus on improving the business and stabilizing the brand.”