CONSHOHOCKEN, PA – Saladworks has filed for Chapter 11 bankruptcy protection this week and announced that it is seeking a buyer in an effort to end litigation between its owners.
In documents filed with U.S. Bankruptcy Court in Delaware, Saladworks listed over $10 million owed to two companies controlled by Vernon Hill, the Commerce Bank founder who has owned a 30% stake in Saladworks since 2008.
The company says that it has been searching for potential buyers since 2013, but the litigation between the companies controlled by Hill and majority owner J Scar Holdings have scared away interested parties, according to the Morning Call.
Saladworks also stated that this litigation has been keeping away franchisees, which are holding off on opening new restaurants until the dispute is resolved.
John Scarpadane, Chairman and CEO of Saladworks LLC, said in a statement, “This process is the best way to maximize value for our franchisees as well as other stakeholders and allow our operations to emerge from bankruptcy quickly.”
The company said this week that the bankruptcy filing will not include individual locations or affiliates, and the restaurants will continue operating as normal. Saladworks hopes to find a buyer within 45 days.