Lender acquires TooJay’s out of bankruptcy
Restaurant group filed for bankruptcy in April
Florida restaurant chain TooJay’s Deli is emerging from bankruptcy with a new owner.
The West Palm Beach-based deli filed for Chapter 11 bankruptcy in April as a result of the impact of the coronavirus pandemic, which forced restaurants to shut their indoor dining rooms down temporarily.
When it filed for bankruptcy, the company had 28 locations. Now, it has 21 locations in Florida, including in Boynton Beach, Palm Beach Gardens and Jupiter, according to its website.
TooJay’s lender, Monroe Capital, a Chicago-based asset management firm, invested in TooJay’s, allowing the deli chain to continue operating without debt. Monroe acquired the company at auction in August, according to the South Florida Business Journal.
TooJay’s owed Monroe Capital $25.5 million for loans provided in October 2018. Boston Market had the second-highest bid, the Business Journal reported, citing court documents. It had between $50 million and $100 million in assets and liabilities when the company filed for bankruptcy.
The deli chain, which was founded in 1981 in Palm Beach, tried to cut costs by reducing its full-time employees, and received a $6.4 million loan from the federal Paycheck Protection Program. [SFBJ] – Jordan Pandy