UFood Files for Chapter 11

Restaurant chain to pursue reorganization with the support of its creditors.

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UFood Restaurant Group, Inc. filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. Other members of the UFood group, including its affiliates and franchised stores in Massachusetts, Ohio, Texas, Utah and Maryland, have not filed for protection.

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UFood will pursue a plan of reorganization to position the chain for future growth that could include evaluating any underperforming stores, strengthening its brand strategies and restructuring its financial obligations along with strengthening its balance sheet and capital structure, according to a company release.

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The release added that UFood has obtained financing that is likely to be sufficient to support it during the Chapter 11 process and the restructuring plan has the support of the company's lenders.

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