DEDHAM, Mass. (AP) — The company that owns the Papa Gino’s pizza parlor and D’Angelo sandwich shop chains has confirmed it has closed about 95 locations throughout New England, filed for Chapter 11 bankruptcy protection and reached an agreement to sell the business.
The announcement Monday by Dedham-based PGHC Holdings Inc. came a day after many employees showed up for work Sunday to find the restaurants closed without explanation.
Rich Wilner, spokesman for PGHC Holdings, said Monday the D’Angelo locations in Maine are franchise locations with private owners and not affected by the closings.
The D’Angelo’s locations in Auburn and Lewiston were open Monday afternoon.
PGHC said in a statement it had reached an “agreement in principle” to sell to Wynnchurch Capital. Terms were not disclosed.
The restaurants that closed were described as “under-performing,” and the company said 178 Papa Gino’s and D’Angelo locations remain open.
The company said the proposed sale would strengthen its financial resources, allow for the remodeling and modernization of 141 company-owned restaurants and allow for new locations.
An automated message for the former Papa Gino’s location at the Auburn Mall stated the restaurant was permanently closed.