DENVER—Vicorp Restaurants, which operates the Village Inn and Bakers Square restaurant chains, is filing for bankruptcy.
The Denver-based company said Thursday it was struggling amid the slowing economy and higher operating costs.
Vicorp filed a Chapter 11 bankruptcy petition in a Delaware court to restructure debt obligations. It says lenders have agreed to provide $60 million in debtor-in-possession financing pending court approval.
Together with cash from operations, Vicorp says it will be able to meet obligations to employees, suppliers and partners.
The company also will close 56 restaurants and conduct an extensive review of underperforming locations as it reorganizes.
Vicorp operates 343 restaurants in 25 states under the Village Inn and Bakers Square brands.
———
On The Net:
