Under which chapter of the U.S. Bankruptcy Code did Cicis Holdings, Inc. file for bankruptcy?
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 the 2025 FDD, Cicis Holdings, Inc., along with several affiliates, filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code on January 25, 2021. The filing was made in the U.S. Bankruptcy Court, Northern District of Texas (Dallas). The court approved the debtors' and creditors' pre-packaged Plan of Reorganization on March 3, 2021, and CiCi Enterprises emerged from bankruptcy on March 10, 2021. The bankruptcy cases against all petitioners except Pizza Parent, LLC were closed on July 2, 2021. The case against Pizza Parent, LLC was later closed on August 30, 2024.
For a prospective franchisee, this indicates that Cicis, as a brand, has experienced financial restructuring in recent years. While the company emerged from bankruptcy in a relatively short period, it is essential to understand the implications of this event. Chapter 11 bankruptcy allows a company to reorganize its debts and operations while continuing to operate.
Franchisees should inquire about the specific reasons for the bankruptcy filing, the details of the reorganization plan, and how the restructuring has impacted the franchisor's financial stability and support for franchisees. It is also important to assess whether the bankruptcy has led to any changes in the franchise agreement, fees, or the level of support provided to franchisees. Understanding these factors will help potential franchisees evaluate the risks and opportunities associated with investing in a Cicis franchise.