Did CiCi Enterprises emerge from bankruptcy before or after the court approved the Plan of Reorganization?
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, CiCi Enterprises emerged from bankruptcy after the court approved the Plan of Reorganization. On January 25, 2021, several affiliated entities, including CiCi Enterprises, filed for Chapter 11 bankruptcy. The court approved the debtors' and creditors' pre-packaged Plan of Reorganization on March 3, 2021. Subsequently, on March 10, 2021, CiCi Enterprises emerged from bankruptcy.
This indicates that the bankruptcy proceedings for CiCi Enterprises were relatively swift, with the company emerging from bankruptcy just one week after the court's approval of the reorganization plan. For a prospective franchisee, this suggests that the bankruptcy was likely a structured process with a pre-negotiated plan, which could provide some reassurance about the stability of the franchise system going forward.
It's important to note that while CiCi Enterprises emerged from bankruptcy in March 2021, the bankruptcy cases against all petitioners except Pizza Parent, LLC were closed on July 2, 2021. The case against Pizza Parent, LLC, was closed later on August 30, 2024. This timeline provides a complete picture of the bankruptcy resolution process for all related entities. A potential franchisee should consider this history as part of their due diligence, assessing the impact of the bankruptcy on the franchise's operations and financial health.