PGHC Holdings, Inc., the Deedham, Mass.-based parent company of Papa Gino's Pizzeria and D'Angelo Grilled Sandwiches, reached an agreement to sell the company to Wynnchurch Capital, Rosemont, Ill.
The proposed transaction would significantly strengthen the chains' financial resources, allowing PGHC to remodel and modernize the 141 company-owned restaurants in Massachusetts, New Hampshire, Rhode Island and Connecticut, as well as open additional restaurants throughout New England and enhance its online ordering capabilities at all restaurants.
"We are pleased to have reached an agreement that will ensure a long and prosperous future for these iconic New England restaurants," says Corey Wendland, chief financial officer of PGHC. "For some time, we have been pursuing a plan to strengthen our financial footing and secure capital for investment in our restaurants, while also addressing our significant debt load. We are confident that the agreement with Wynnchurch achieves all of those goals."
In order to complete the proposed sale, PGHC filed petitions for protection under Chapter 11 of the U.S. Bankruptcy Code.
"We recognize we have a responsibility to not only provide for the future of these businesses, for our valued team members and guests, but to also ensure our current debt structure is sufficiently addressed," adds Wendland. "We believe this process will allow us to do just that and build an even better company for all of our team members by creating an atmosphere that team members will be proud to serve in. PGHC will continue its long tradition of hosting birthday parties, team celebrations and other neighborhood events as well as serving delicious favorites like Papa Gino's famous 3-cheese pizza or a D'Angelo Steak & Cheese."
One hundred Papa Gino's restaurants and 78 D'Angelo Grilled Sandwiches restaurants, including franchise locations, will continue to operate and remain open for business.
"These were hard decisions, but decisions we believe were absolutely necessary to allow Papa Gino's and D'Angelo Grilled Sandwiches to continue serving New England now and for years to come," says Wendland. "We look forward to serving our guests the pizza and grilled sandwiches they have come to love over many decades. If your nearest Papa Gino's or D'Angelo has closed, be assured that your favorite pizza or Steak Number 9 sandwich awaits you at a re-energized restaurant not too far away."