Private-equity firm Monroe Capital wins bidding, which included Boston Market Holdings Corp.
Florida-based TooJay’s Deli has emerged from Chapter 11 bankruptcy protection with Chicago private-equity firm Monroe Capital Management Advisors LLC as the new owner.
West Palm Beach, Fla.-based TooJay’s Management LLC, which cited 21 locations on its website, filed for bankruptcy protection in late April, citing the coronavirus pandemic’s impact on business.
A rejected bidder in the U.S. Bankruptcy Court for Southern Florida auction was Golden, Colo.-based Boston Market Holdings Corp., an owner of the rotisserie chicken brand, according to court documents.
"The restructuring process allowed the company to emerge debt free, which it believes will provide significant financial flexibility to support its operations,” the company said in a statement. “The company’s new owner, Monroe Capital, is providing capital to support growth in the business going forward.”
Monroe Capital had also arranged financing for TooJay’s in 2018.
As part of the bankruptcy process, several leases were rejected, leaving TooJay’s with 21 locations, down from about 30 before the pandemic.
TooJay’s CEO Maxwell Piet said the remaining locations of the 39-year-old brand have reopened under state and local COVID-19 guidelines.
"Prior to COVID-19, the company’s revenue was ahead of last year, but the pandemic's impact created difficulty for many industries,” Piet said in a statement. “We want to thank our team members and guests for their support during this time. “
TooJay’s filed for Chapter 11 reorganization in late April, saying the decision was “a direct result of the devastating impact" of COVID-19 and the state-imposed shutdown of all restaurant dining rooms to slow the spread of the coronavirus. At the time, TooJay’s Management LLC reported assets between $50 million and $100 million and liabilities from $10 million to $50 million.
TooJay’s was founded in 1981 in Palm Beach, Fla.
Contact Ron Ruggless at [email protected]
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