Texas-based Gigi's Cupcakes LLC and Sovrano LLC, owner of Mr. Gatti’s Pizza, have both filed for Chapter 11 bankruptcy.
The cupcake chain, which also ships cupcakes nationwide, filed for reorganization Jan. 4 in Texas Northern Bankruptcy Court, listing liabilities ranging from more than $1 million to $10 million.
Both Gigi’s and Sovrano are affiliates of FundCorp, a Fort Worth, Texas-based private equity group. According to the bankruptcy filing, Gigi’s petitioned to have its case joined with Sovrano, which also filed for Chapter 11 this week.
FundCorp bought Gigi’s in 2016. At that time, the brand relocated from Nashville to Texas.
In 2015, Sovrano bought Mr. Gatti’s, a limited-service pizza company based in Austin, Texas. Restaurants feature a pizza buffet and family entertainment game rooms.
The pizza company, which has been refranchising corporate stores, last year opened its first new franchise location in seven years in Killeen, Texas.
Sovrano listed liabilities ranging from more than $10 million to $50 million.
In September, Mr. Gatti’s Pizza had nearly 100 locations.
GiGi’s was founded in 2008 by entrepreneur Gina “Gigi” Butler as a local boutique bakery in Nashville, offering cupcakes, cakes, cookies and other baked goods. When FundCorp. bought Gigi’s Cupcakes, the company had about 100 franchise locations across the country.
Representatives for the companies could not be reached for additional comment.
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