Restaurant Owner Uno Files for Chapter 11

Uno Holdings Corp., the parent of the Uno pizzeria chain, filed for bankruptcy protection Wednesday with a plan that cuts $142 million in debt from its books and gives control of the company to bondholders.
The privately held company filed for Chapter 11 protection in U.S. Bankruptcy Court in Manhattan.
"The Uno brand is strong; it's the balance sheet that needs fixing," Uno Chief Executive Frank Guidara said in a statement. "Today's announcement marks the beginning of a new era for Uno wherein the company will no longer be saddled with a burdensome debt load."
Like other restaurant chains that have filed for bankruptcy protection in recent months, the company blamed its financial difficulties on a falloff in business as diners cut back on restaurant spending due to economic downturn.
The drop in Uno's sales led to a net loss for fiscal year 2009 of approximately $22.2 million and a net loss for fiscal year 2008 of approximately $15.1 million, according to court papers.
Prior to the bankruptcy filing, Uno closed 17 underperforming restaurants. The company is also negotiating new lease terms for certain other restaurant locations, according to court papers. In the event it isn't able to negotiate acceptable terms, the company said, it may close additional restaurants.
The bondholders and the company's existing bank lenders, led by Wells Fargo Capital Finance Inc., have agreed to provide a $52 million bankruptcy loan to fund the company's business during the Chapter 11 case.
Uno Holdings owns 99 restaurants, now named Uno Chicago Grill, which account for about 86% of the company's revenue, according to court papers. Some 76 additional Uno Chicago Grill are independent franchisees.
Those franchises, which account for just 2% of the company's revenue, aren't part of the Chapter 11 case but have franchise agreements with Pizzeria Uno Corp., which also filed for bankruptcy protection.
Uno Holdings is controlled Centre Partners Management LLC, which purchased the company in a 2005 leveraged buyout. Minority stakes in the company are owned by founder Aaron Spencer, his family, Uno's management and other investors. Those equity stakes will be wiped out, according to court papers.
Uno, headquartered in West Roxbury, Mass., began operations in Chicago in 1943 with its first restaurant, "Pizzeria Uno," serving up Chicago-style, deep-dish pizza.
 
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Times are really tough and it's amazing the number of big chains of restaurants and other retail entities that have gone defunct in the past 2 years.

I'm not surprised.  Not only given the economy, but the fact that the Uno's chain restaurants never lived up to the hype of the original Uno's and Due in Chicago.  They were two different animals.  I went to an Uno's Chicago Grill once and never went back.  The pizza was far from great.

collinf


I'm not surprised.  Not only given the economy, but the fact that the Uno's chain restaurants never lived up to the hype of the original Uno's and Due in Chicago.  They were two different animals.  I went to an Uno's once and never went back.  The pizza was far from great.

Your right when you say that Uno's chain never lived up to the hype of the original Uno's/Due in Chicago...but I still think when it comes to chains Uno's chain is better than most chains out there.

IntelligentT82
 
...but I still think when it comes to chains Uno's chain is better than most chains out there.

Can't say I agree with you on that! They served a decent drink, but beyond that we pretty much had them in the "We're starving & there's nothing else open" category.

"Your right when you say that Uno's chain never lived up to the hype of the original Uno's/Due in Chicago...but I still think when it comes to chains Uno's chain is better than most chains out there."
 
 Okay, I'll bite. I say Steak n Shake here in the midwest is a hellova lot better chain than Uno;s is.

My feelings exactly. Steak n Shake, which the Sterns included in the first two editions of Roadfood more than thirty years ago, is one of the better restaurant chains in the country. The Uno's chain is, IMO, a waste of time and money; Uno/Due founder Ike Sewell is probably spinning in his grave.

I'm a little surprised by this comparison. From my experiences of the two chains in Homestead, PA, Uno's has some quite good dishes (I particularly like the spaghetti bolognese), but the Steak and Shake has more than once been such a dismal experience that we've had to complain to the manager.

(My personal comparison is probably tilted further by the fact that the Homestead Uno's has really excellent outdoor seating that overlooks the river and avoids the noise of passing traffic.)

I've eaten at franchised Uno's locations several times over the years and have always come away disappointed. Their deep-dish pizza is just a sad imitation of that at Chicago's Pizzeria Uno and Due. My Steak n Shake experiences, going back to the 1970s, have been just the opposite. In all my visits to various Steak n Shakes, I've only had one bad experience, and that was at a location that had just opened weeks earlier.    
 

Interesting.  I have never had an acceptable meal at a Steak and Shake1  I have been to one   three times  and  always had  a quite dreadful meal

Went to the Unos in Clay, NY (near Great Northern Mall). Had a great time sipping drinks and the appetizers were ok. The staff was super friendly, the place was spotless, and nice decor. Bathroom was spotless and shiny. Manager was a nice guy, too and obviously cared that we were there.

I hadn't had great experiences at other Unos in the past, but this one is working as well as I think they can run. It's a corporate owned Unos and not a franchise, which, I came to understand, makes a huge difference.

BTW - went there on my friend's suggestion to watch SU basketball game and sat at the bar.

I've only been to Unos once or twice, but neither time was anything outstanding. Nice restaurant though. I'd take it over TGIFridays in a heartbeat.