Giordano’s Announces Selection of Stalking Horse for Restaurant Assets

CHICAGO--(www.hospitalitybusinessnews.com)--On October 19, 2011, Philip V. Martino, Chapter 11 Trustee for Giordano’s Enterprises, Inc. and affiliated debtors (collectively, the “Debtors”), filed a motion with the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, seeking Bankruptcy Court approval to select Giordano’s Holding Company LLC (“GHC”), a company managed by the Italian Food Network LLC, as the stalking horse to purchase the Debtors’ restaurant assets for $26 million. GHC is a privately held company spearheaded by Ivan Matsunaga and Marc Stolfe, veterans of the Chicago-based Connie's Pizza chain. The Trustee is also seeking approval to set November 10, 2011 as the deadline for the submission of competing bids and November 15, 2011 as the auction date. The filed pleadings indicate that the Trustee will accept offers to purchase all of the Debtors’ assets, including an extensive portfolio of owned real estate as well as the restaurant assets

In a brief statement, Mr. Martino said, “We are very pleased to have selected GHC as the stalking horse bidder for the restaurant-only assets. One of the important criteria leading to the selection of GHC is its operating experience and interest in preserving most, if not all, of the Debtors’ employees.” Fred Caruso, the Debtors’ Restructuring Officer, concurred. “The GHC bid enables the Debtors to continue their operations without any disruption. The bid should further reassure Giordano’s customers and suppliers that it will continue to provide high-quality service and pizza for a long, long time.”

In addition to the restaurant assets, the Debtors own a number of Chicago area locations, including the office building housing Giordano’s prized flagship location at 740 North Rush Street in Chicago. The Trustee expects the bidding for the real estate to be robust. "Due to the high level of interest in the real estate,” said Martino, “I have yet to make a decision regarding whether to engage a stalking horse purchaser for all or specific real estate assets.”