The parent company of the Village Inn restaurant chain sought Chapter 11 bankruptcy protection Monday, three days after it closed a location in Monument, north of Colorado Springs.
The Village Inn in Monument, northwest of Interstate 25 and Highway 105, was shuttered Friday by Nashville, Tenn.-based American Blue Ribbon Holdings, whose operations include 75 company-owned and 84 franchised Village Inn locations.
American Blue Ribbon Holdings announced Monday it had filed a petition for a Chapter 11 bankruptcy in U.S. Bankruptcy Court in Delaware and would close 33 Village Inns nationwide as part of a reorganization plan. The Monument location was one of those 33, a Village Inn/American Blue Ribbon spokesman said via email.
A Chapter 11 filing allows a company to propose a reorganization while seeking to restructure its debt with creditors, all with the goal of staying in business.
American Blue Ribbon Holdings also operates 22 company-owned Bakers Square restaurants in six Midwestern states. It also runs Legendary Baking, which has two manufacturing facilities that produce more than 25 million pies annually, with over 75% of sales going to third-party customers.
The Monument restaurant is the second local Village Inn to close in recent months; a location on South Carefree Circle in Colorado Springs, west of Powers Boulevard, was closed Sept. 29 by American Blue Ribbon Holdings.
All Village Inn employees who lost their jobs at the Monument and South Carefree locations were offered jobs at other locations or provided severance packages, according to a Village Inn/American Blue Ribbon Holdings statement. It’s unknown how many employees worked at the restaurants.
Village Inn says its restaurants have been around since 1958, although an original Village Inn was started in 1937 on Pikes Peak Avenue in downtown Colorado Springs, according to Gazette archives. Today, the chain has locations in 21 states and Guam, according to its website.