georgie18's House of Gain...

[pmunch]

Lenders for Cosi Inc. have been designated the winning bidder for the bankrupt Boston-based restaurant chain known for its flatbread sandwiches, according to court documents filed yesterday.

Cosi, which filed for Chapter 11 bankruptcy protection in September, moved to cancel today’s planned court auction after no other parties submitted a higher or better offer than LIMAB LLC’s $6.8 million “stalking horse” bid.

The purchase by LIMAB, which is comprised of AB Opportunity Fund LLC, AB Value Partners LP and entities affiliated with Ohio investment firm Milfam LLC, requires court approval.

In September, the cash-strapped Cosi said it closed 29 of its 74 company-owned restaurants and laid off 450 full- and part-time workers. Its bankruptcy documents listed $19.83 million in debt and $31.24 million in assets.

Cosi said it had been hurt by overall economic conditions in the fast-casual restaurant industry and was unable to fund much-needed capital projects for its restaurants to remain competitive. Significant operating losses at certain locations also placed an “insurmountable burden” on its cash flow, it said at the time.

Cosi now operates 44 company-owned restaurants, according to court documents. The company yesterday also asked the court for approval to abandon its unexpired lease at 53 State St. in Boston and any remaining property there after receiving notice from its landlord that it was terminating the lease effective Dec. 5. Cosi closed the restaurant on Nov. 23.

Company officials and attorneys did not respond to Herald inquiries.




http://www.bostonherald.com/business/business_markets/2016/11/investment_group_buys_cosi_eatery_chain_out_of_bankruptcy