BATON ROUGE, La. -- Piccadilly Restaurants LLC filed for Chapter 11 bankruptcy protection after lender Atalaya sued to force the company into receiver-ship, WBRZ Baton Rouge reported Thursday.
The Baton Rouge-based, cafeteria-style restaurant chain has 13 locations in metro Atlanta.
According to an Aug. 15 press release, Picadilly began providing food service for Community Christian School in Stockbridge this school year. It's also served Lou Walker Senior Center in Lithonia, Fayette Christian School, the American Red Cross and several local Emergency Response Agencies.
The restaurant chain reportedly owes between $10 million and $50 million to creditors.
"Their action should it have been gone through was to have the ability to seize bank accounts," WBRZ quoted Piccadilly CEO Thomas Sandeman. "And that was unacceptable. It would have put us out of business overnight. It literally would have put us out of business over night."
Sandeman also told the Baton Rouge news station he isn't sure how many restaurants will close and how many employees will be cut.
Piccadilly has about 80 restaurants and more than 75 food service operations. It employs about 3,500.
(Atlanta Business Chronicle)