SALT LAKE CITY — A popular Utah sandwich restaurant chain has declared chapter 11 bankruptcy after an executive said it “expanded too quickly.”
Even Stevens, which had a combined 15 stores in Utah, Arizona, Idaho, Colorado, Texas and Washington, has already shuttered five of its locations “in order to right-size the company and put it on track to achieve enterprise-level profits,” Brooks Pickering, chief restructuring officer for the company, said in a news release Thursday.
According to bankruptcy documents filed in U.S. Bankruptcy Court for the District of Arizona, Even Stevens owes between $1 million and $10 million combined to dozens of creditors. The restaurant currently has between zero and $50,000 in assets, the document states.
Among Utah businesses to which the chain is most in debt, Even Stevens owes West Jordan-based Sysco Intermountain $380,000, Salt Lake City-based Standard Restaurant Supply more than $100,000 and Orem-based Strategic Technology $44,000, according to the document. It also owes more than $4.5 million in inter-company loans.
As part of its restructuring, the company is closing its Provo location, as well as locations in Arizona, Texas and Colorado. All employees at the Provo location have been offered jobs at other Utah locations, the release states.
The decision to file bankruptcy came after “seven months of business restructuring,” according to the company. The chapter 11 bankruptcy filing “allows the company to conduct business during the restructuring process.”
“Today’s action is an important step on our path to financial stability,” Pickering said. “As a start-up, Even Stevens came out of the gate with positive momentum but expanded too quickly, saddling the company with significant financial and operational challenges.
“While the restructuring to date has significantly improved operations, the remaining challenges require the tools afforded through the bankruptcy process to properly protect the interests of our investors, financiers, employees and customers. With the proper …read more
Source:: Deseret News – Business News