Piccadilly Files For Chapter 11 Bankruptcy
BATON ROUGE, La. (AP) — Piccadilly Restaurants, a Baton Rouge-based cafeteria chain, has filed Chapter 11 bankruptcy.
Thomas Sandeman, the company's CEO, told The Advocate the filing, which was made Tuesday in U.S. Bankruptcy Court in Lafayette, will protect the value of Piccadilly, along with its employees and restaurants.
The bankruptcy filing said the chain wanted to protect itself from what it called "an aggressive legal maneuver" taken by lender Atalaya Capital Management.
Atalaya filed suit on Sept. 5 against Piccadilly seeking the $25.7 million it said Piccadilly owed in principal and interest.
Atalaya officials did not respond to emails and phone calls from the newspaper.
Piccadilly currently operates 81 restaurants and 3,464 employees. In its Chapter 11 filing, Piccadilly said it owes between $10 million and $50 million to its creditors.