• Could Chapter 11 Deliver Giordano’s To Competitor?

    Already owning Gino’s East and Edwardo’s Natural Pizza, 62-year-old Jeff Himmel’s West Loop-based Bravo Restaurants Inc. will be among the parties interested in making a bid for Giordano’s Enterprises, the Chicago Tribune reported on September 9, 2011. The Chicago-based deep-dish pizza chain is going to be sold as part of its Chapter 11 reorganization in U.S. Bankruptcy Court after filing for bankruptcy last February.

    In addition to the Gino’s East and Edwardo’s restaurant chains, Bravo Restaurants also owns Ed Debevic’s. The Tribune reported that Giordano’s is expected to sell for at least $40 million, with the pizza chain’s main creditor, Fifth Third Bank, owed $45.5 million. The Apostolou family, who owned Giordano’s when it went into bankruptcy court, are also among the other interested bidders. John Apostolou lost control of Giordano’s in the bankruptcy, but his two sons own franchises in Chicago that are not part of the bankruptcy, according to the Tribune.

    You do not need to own a pizzeria to be involved in a messy financial situation. Whether you are seeking Chapter 13 or Chapter 7 bankruptcy information , our Chicago bankruptcy attorneys have decades of experience helping people fight foreclosures, stop wage garnishment and rebuild credit. If you are struggling through hard times and wondering if now is the time to seek help with a bankruptcy means test , contact our office today for a free consultation.

    Benjamin Brand Services – Chicago bankruptcy lawyers

  • Owner of Giordano’s Pizza Makes Strange Decisions during Bankruptcy

    Giordano’s owner, John Apostolou, has made inexplicable decisions during the chapter 11 bankruptcy of his pizza chain. His actions have caused the court to bar him from his restaurants and hire an investment banker to sell the chain.

    Apostolou’s lawyer admits that his client made mistakes, causing Apostolou to lose control of the business during the bankruptcy . The biggest mistakes made are unusual documents Apostolou filed in court in which he improperly tries to terminate the bankruptcy, alleging fraud and other misdeeds. Included in the documents is an affidavit signed by his wife, Eva, in which they claim they do not recognize U.S. currency and are free of any legal constraints.

    Apostolou also fired Giordano’s bankruptcy attorney. This action caused the U.S. Justice Department to ask the bankruptcy court to appoint a trustee to seize the business.

    Trustee Philip Martino stated in a court hearing “because of certain perspectives that the Apostolou’s have, they have done a few things that merit this court’s attention. Perhaps it contributed to the lack of confidence that creditors have and certainly were part of the reason why I wanted them removed as fiduciaries.”

    Martino also said in court that he asked the Apostolous not to patronize Giordano’s because he thought their presence could be disruptive.

    If you are considering filing for bankruptcy and would like to learn more about the process, contact a Chicago bankruptcy attorney for more information.