In recent years, Corner Bakery has had trouble. The epidemic hurt sales for the restaurant that used to compete with Panera, and it still hasn't recovered.
The number of stores in the chain has also gotten smaller. In February 2023, the data business recorded 140 U.S. units, which is less than the 175 units it reported in February 2019.
The Chapter 11 petition stops the company's creditors from taking over.
Court documents show that SSCP Restaurant Investors bought the chain's $33.8 million in secured debt and started taking over Corner Bakery, which led to the bankruptcy petition.
Corner Bakery says that they owe between $20 and 24 million dollars.
The protections the chain asked for would let it keep operating while it comes up with a plan to restructure and hopefully pay off its debts and save the company.
The company stopped paying its debts last year and blamed "underperforming" locations.
In 2020, the company hired restructuring and financial experts to look at strategic ways to restructure its debt.
Before the epidemic in 2019, Panera was the U.S.'s highest-grossing bakery-café chain, followed by Corner Bakery and Einstein Bros. Bagels.
Corner Bakery may get back on its feet, but many people and businesses are switching to remote work.