DEDHAM, MASS. (WHDH) - The parent company of the popular New England restaurants Papa Gino’s and D’Angelo Sandwiches announced Monday that it has reached an agreement in principle to sell the chains to a Wynnchurch Capital portfolio company after abruptly closing several locations on Sunday.
PGHC Holdings says the move would “significantly strengthen the chains’ financial resources,” allowing for the ability to remodel and modernize their 141 restaurants in Massachusetts, New Hampshire, Rhode Island, and Connecticut.
The Dedham-based company also has plans to open additional restaurants throughout New England and enhance online ordering capabilities at all locations.
“We are pleased to have reached an agreement that will ensure a long and prosperous future for these iconic New England restaurants,” Chief Financial Officer Corey Wendland said. “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.”
But workers said the abrupt closure of restaurants across New England came as a surprise.
“The rug got ripped out from under everyone,” said former employee Julia Spanos. “This is actually my only income, (so I’m) panicking on what to do.”
Abb Santana said she was “very disappointed with how the information got out,” saying, “It could’ve been handled a lot more professionally.”
The company has filed petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in order to effectively complete the proposed sale.
The company hasn’t provided a full list of closures but it previously said it had 150 stores. As of Sunday, its website only listed 97 locations.
Papa Gino’s was founded in 1961 in East Boston as Piece O’ Pizza. It changed its name to Papa Gino’s in 1968. D’Angelo’s first opened in 1967.
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