Morgan Hill-based restaurant chain Fresh Choice is seeking a
fresh start after filing for Ch. 11 bankruptcy protection last
month. The operator of 46 soup-and-salad restaurants closed a total
of 10 restaurants in Southern California, Texas, and Washington
State, including a 7-month-old location at the Westfield
Shoppingtown Valley Fair mall in San Jose, immediately upon
filing.
Morgan Hill-based restaurant chain Fresh Choice is seeking a fresh start after filing for Ch. 11 bankruptcy protection last month.
The operator of 46 soup-and-salad restaurants closed a total of 10 restaurants in Southern California, Texas, and Washington State, including a 7-month-old location at the Westfield Shoppingtown Valley Fair mall in San Jose, immediately upon filing.
The company also reorganized its corporate structure, promoting Tim O’Shea to the new post of president/COO.
CEO Jeff Jefferson said the company will keep its headquarters in Morgan Hill and will not shut down the chain’s nearest restaurant in Gilroy.
“We have 46 (restaurants) going strong and we hope to emerge stronger after our reorganization,” Jefferson said.
Earlier this year, Fresh Choice reported a $407,000 net loss in the 12-week period ending March 21.
Attorney Chris Alliotts of the firm SulmeyerKupetz, which represents Fresh Choice’s creditors, said the restaurant chain must recalibrate its overall strategy in a changing marketplace.
He said chalking up the chain’s financial woes to its expansion effort earlier this decade is missing the point.
“Fresh Choice is currently struggling in its market and trying to figure out its place,” Alliotts said. “They did try to expand a few years ago but there’s some question about whether this can be blamed on an ill-advised expansion.”
Alliotts said the chain has been buffeted by changes in the marketplace, such as the addition of healthier foods by fast food chains and the overall economic situation. He pointed out that people have been leaving California, where the chain is based.
“The question is whether (Fresh Choice) can remain viable and pay off all its creditors,” he said.
The Emeryville-based Chevy’s fresh-mex restaurant chain also filed for Chapter 11 bankruptcy earlier this year.
— Staff report
