Boston Market owner Jay Pandya files for bankruptcy a second time
Dive Brief:
Boston Market owner Jay Pandya filed for bankruptcy last Friday for the second time, according to court documents.
A judge dismissed Pandya’s previous bankruptcy case, which was filed in December, last month after Pandya failed to fulfill requests from the court for more information within a two-week period.
The second bankruptcy filing comes shortly after US Foods won its case against Boston Market by default. A federal judge found the chain owed the food supplier $12 million.
Dive Insight:
This second bankruptcy was filed about a month after Boston Market presented a turnaround plan involving partnering with non-traditional operators and a six-week rotation of internationally inspired menu items. Restaurant Dive found that the menu items had yet to be added to several existing Boston Market restaurants. Many questions also remain over the structure of its proposed non-traditional partnerships, especially since there are no initial buy-in fees.
Boston Market’s issues extend beyond its owner’s personal finances. The chain has faced fines for unpaid wage and lawsuits from landlords over unpaid rent. Colorado also seized the company’s headquarters last May over back taxes.
It’s unclear how many Boston Market restaurants are still open, but it last reported about 300 restaurants at the end of 2022. The real number is likely much lower, given reports of various closures across the country last year. As of early February, the chain listed 79 units on its website.
Pandya has between $10 million and $50 million in liabilities, as well as $10 million to $50 million in assets, according to court documents. US Foods, Pizza Hut and the Internal Revenue Service are among Pandya’s top 20 creditors.
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