Chicago-based Giordanos files bankruptcy

Read about Giordano’s filing bankruptcy:

“CHICAGO (AP) — The Chicago-based pizza chain Giordano’s has filed for Chapter 11 bankruptcy, but will continue operating with court approval to use part of a $36 million bankruptcy loan to pay employees and vendors.

The chain, known for its stuffed pizza, owes nearly $46 million to Fifth Third Bank, its main lender, according to this week’s bankruptcy filing.

The company runs stores in the Chicago area, four joint-venture locations and 35 franchised restaurants. The chain sells frozen pizzas for overnight delivery.

John and Eve Apostolou own the pizza chain. Attorney Michael Gesas, representing the debtors, says the pizza business is strong, but the company defaulted on real estate loans.”

How could this potential affect the employees? Yes, the company is trying to save jobs, but could this affect the moral of the company, knowing that the company is going under and only paying employees with a bankruptcy loan?

[Katie Haisley]


About internalmarket

This blog and its accompanying Twitter account have been established as social media learning tools for the Internal Communications and Employee Engagement class at Columbia College Chicago. Through this blog, we will share our observations about current events, change management and employee communications theory, and the application of social media in shaping employee engagement.
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