Who approved the debtors' and creditors' pre-packaged Plan of Reorganization for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
U.S. Bankruptcy Court, Northern District of Texas (Dallas) Bankruptcy Petition: 21-30146-sgj11: On January 25, 2021, some of our current and former affiliates, namely, Cici's Holdings, Inc., Awesome Acquisition Company, CAC, CiCi Enterprises, CiCi GP, LLC, CiCi Services, JMC GP, LLC, JMC Restaurant Distribution, LP, and Pizza Parent, LLC, filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. All the debtors share our principal business address. On March 3, 2021, the court approved the debtors' and creditors' pre-packaged Plan of Reorganization, and March 10, 2021, CiCi Enterprises emerged from bankruptcy. On July 2, 2021, the bankruptcy cases against all the petitioners except Pizza Parent, LLC were closed. On August 30, 2024, the case was closed against Pizza Parent, LLC.
Source: Item 4 — BANKRUPTCY (FDD page 11)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the U.S. Bankruptcy Court, Northern District of Texas (Dallas) approved the debtors' and creditors' pre-packaged Plan of Reorganization on March 3, 2021. This bankruptcy petition, numbered 21-30146-sgj11, was filed on January 25, 2021, by several of Cicis's current and former affiliates, including Cici's Holdings, Inc., Awesome Acquisition Company, and others.
For a prospective franchisee, this indicates that Cicis underwent a bankruptcy reorganization. While the court's approval of the plan allowed Cici Enterprises to emerge from bankruptcy on March 10, 2021, it's essential to understand the implications of this past financial distress. The closure of bankruptcy cases against most petitioners by July 2, 2021, and the final case against Pizza Parent, LLC on August 30, 2024, suggests a resolution of these issues.
It is important for potential franchisees to inquire about the details of the bankruptcy, the reasons for it, and how Cicis has strengthened its financial position since emerging from Chapter 11. Understanding the long-term financial stability and any potential risks associated with the company's past bankruptcy is a crucial part of due diligence before investing in a Cicis franchise.