Le Pain Quotidien freed from 59 leases in bankruptcy

New owner will reopen 35 of the eatery’s 94 locations

TRD NATIONAL /
May.May 29, 2020 12:00 PM
A judge allowed Le Pain Quotidien to be released from 59 of its leases. (Getty, iStock)
A judge allowed Le Pain Quotidien to be released from 59 of its leases. (Getty, iStock)

Upscale bakery chain Le Pain Quotidien will be allowed to break 59 of its leases, in a decision the judge acknowledged is “unusual.”

The company filed for Chapter 11 bankruptcy protection, which allowed it to pare down debt and complete a $3 million sale to Aurify Brands pending court approval, Bloomberg reported.

“The relief requested is unusual, but these are unusual times,” U.S. bankruptcy Judge John Dorsey said of Le Pain Quotidien’s request for immediate freedom from its leases.

Aurify plans to reopen 35 of the Belgian brand’s 94 stores in the U.S., which employ about 1,000 workers. The locations have been closed since state and local governments issued shutdown orders at the beginning of the pandemic.

The popular chain was founded in 1990 and opened its first U.S. eatery in 1997. CEO Doug Saltzman, who joined Le Pain Quotidien in 2016 after 14 years at Starbucks, bought an Upper West Side pre-war duplex for $2.8 million the following year.

In deciding which of its leases to renegotiate, Aurify focused on underperforming stores and “assessed the impact of operating with a reduced portfolio of restaurant locations,” according to court filings, Bloomberg reported.

The buyer may also seek to renegotiate additional leases, an attorney for Aurify said in a court filing. [Bloomberg] — Georgia Kromrei 


Related Articles

arrow_forward_ios
Single-family and condo home sales were up sharply in L.A. County in June

“Massive release of demand”: LA County June home sales surge

“Massive release of demand”: LA County June home sales surge
Michael Rosenfeld and a rendering of Century Plaza (Credit: Presley Ann/Getty Images for THR)

Inside Michael Rosenfeld’s $1.8B odyssey at Century Plaza

Inside Michael Rosenfeld’s $1.8B odyssey at Century Plaza
An illustration of Gov. Gavin Newsom (Credit: Justin Sullivan/Getty Images)

LA County ordered to shut indoor dining for 3 weeks as Covid cases climb

LA County ordered to shut indoor dining for 3 weeks as Covid cases climb
Brookfield Asset Management CEO Bruce Flatt and Woodridge CEO Michael Rosenfeld with 101 S. Marengo Avenue, and a rendering of the building (Credit: Google Maps)

CRE investment sales in LA sank like a stone in May

CRE investment sales in LA sank like a stone in May
John Zhao and a rendering of Oceanwide Center (Credit: Rendering © DBOX; Nora Tam/South China Morning Post via Getty Images)

Coronavirus forces another delay of Oceanwide Center sale in San Fran

Coronavirus forces another delay of Oceanwide Center sale in San Fran
Gov. Gavin Newsom (Getty)

Not so fast! A week after they reopened, state orders LA County bars to close

Not so fast! A week after they reopened, state orders LA County bars to close
Douglas Elliman CEO Howard Lorber and West Coast exec Stephen Kotler

In “new world of real estate,” Elliman exits Montecito office

In “new world of real estate,” Elliman exits Montecito office
LAHSA Executive Director Heidi Marston

LA County targets $800M to house the homeless

LA County targets $800M to house the homeless
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...