AUSTIN, Texas — Months after Austin-based Mr. Gatti's announced 13 Austin locations would be sold to a former Papa John's executive, the company is filing to bankruptcy.
According to federal court records obtained by the Austin Business Journal, Sovrano LLC filed for Chapter 11 bankruptcy on Jan. 4 with liabilities of $10 million to $50 million. Sovrano LLC is an affiliate of FundCorp, Inc. and owns Mr. Gatti's, Dallas Business Journal reported.
In a statement to KVUE, the company said customers will not see any changes in service or the quality of the products. The company said the filing is "necessary to address the capital structure and primary banking relationship."
Here's the full statement:
This is necessary to address the capital structure and primary banking relationship, and is not a result of the health of the brand’s operations.
This filing will have no impact on operations at the store level. Customers will not see any changes in service or the quality of our products.
In addition, this filing will have no impact on our level of support we provide to each of our franchisees. The company will continue to pay suppliers, vendors and employees.
An Austin staple for nearly 50 years, the company announced in September 2018 that Austin entrepreneur and former vice president of operations for Papa John's Pizza Jeff Tisdel would take over 13 corporate locations in Austin. Mr. Gatti's in Southpark Meadows will remain a corporate location and all the other franchise locations in the surrounding Austin area will remain unaffected, the company announced.