Popular Florida deli chain TooJay’s files for bankruptcy

TooJay’s owes over $33M to lenders, according to its bankruptcy filing

TRD MIAMI /
May.May 01, 2020 02:30 PM
TooJay’s (Credit: Google Maps)

TooJay’s (Credit: Google Maps)

The popular Florida deli chain TooJay’s declared bankruptcy as a result of the impacts of coronavirus.

TooJay’s Management, which opened its first restaurant in Palm Beach in 1981, filed for Chapter 11 bankruptcy earlier this week in federal court in the Southern District of Florida. The company owns and operates 28 locations in Florida, including in Hallandale Beach, Fort Lauderdale and Jupiter, according to its website.

TooJay’s tried to cut costs by reducing its full-time employees from 1,114 to 290. It also received a $6.4 million loan from the federal Paycheck Protection Program (“PPP”), which it plans to use for payroll and other expenses, including future rent, according to the company’s bankruptcy filing.

The company said, however, that its “fixed operating costs make it challenging for it to maintain its profitability and other key financial health metrics” required by its lender, Monroe Capital Management.

The Chicago-based private lender had an agreement with TooJay’s to provide a loan of up to $26 million, according to the filing. Toojay’s also obtained $7 million in secured loans from two mezzanine lenders.

As of Wednesday, Monroe Capital was owed $25.5 million, and mezzanine lender Stamford, Connecticut-based Brookside Mezzanine Partners was owed $7.27 million, according to Toojay’s filing.

TooJay’s has between $50 million and $100 million in assets and liabilities, the bankruptcy filing shows. The company’s largest unsecured creditors are Truist Bank for $6.4 million, U.S. Food Service for $1.9 million, and Three Atlanta LLC for $109,000.

Additional bankruptcy filings are expected across the country as restaurants and small businesses struggle to survive due to the impacts of coronavirus, experts say. Last week, the owner of the movie theater chain CMX Cinemas filed for bankruptcy in Miami.


Related Articles

arrow_forward_ios
Map of priciest condo sales and Icon South Beach (Credit: Google Maps and Gzzz via Wikipedia)

Miami condo sales volume nosedives in mid-May

Miami condo sales volume nosedives in mid-May
Steve Schonfeld, Bellaria condominium complex (Credit: Google Maps)

Hedge funder Steven Schonfeld sells Palm Beach condo

Hedge funder Steven Schonfeld sells Palm Beach condo
110 Atlantic Avenue, Scott Schuster (Credit: Google Maps)

Healthcare entrepreneur sells Palm Beach home for $8M

Healthcare entrepreneur sells Palm Beach home for $8M
Miami Beach Votes To Reopen Pools (Credit: iStock)

Miami Beach votes to reopen pools in resi buildings, but needs the county to sign off

Miami Beach votes to reopen pools in resi buildings, but needs the county to sign off
(Credit: iStock)

Home sales dropped big time in South Florida in April

Home sales dropped big time in South Florida in April
Miami Beach Mayor Dan Gelber and City Manager Jimmy Morales (Credit: Nicholas Hunt/Getty Images, and Mike Coppola/Getty Images)

Miami-Dade targets June 1 opening date for hotels, beaches following Miami Beach vote

Miami-Dade targets June 1 opening date for hotels, beaches following Miami Beach vote
Seritage Growth Properties stopped construction at Esplanade at Aventura because of the pandemic, and now Mexican restaurant Carolo wants to break its lease.

Esplanade at Aventura work stoppage leads to lawsuit by Mexican restaurant

Esplanade at Aventura work stoppage leads to lawsuit by Mexican restaurant
(Credit: iStock)

Luxury condo prices drop in downtown Miami amid lockdown

Luxury condo prices drop in downtown Miami amid lockdown
arrow_forward_ios

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

Loading...