A U.S. Bankruptcy Court has confirmed a reorganization plan for Street Breads of Southwest Louisiana LLC, which owns and operates the Street Breads restaurants near the Perkins Road overpass in Baton Rouge and the original location in Lake Charles.
The restaurant company, which specializes in gourmet sandwiches, salads and pizza, filed for Chapter 11 bankruptcy protection in early February.
According to a reorganization plan, confirmed by the U.S. Middle District Bankruptcy Court in June, a Lake Charles-based equity investor will assume Street Breads’ debt and begin repaying some of the more than $846,000 owed to creditors that include banks, the Louisiana Department of Revenue and the IRS, court documents show.
Small, unsecured creditors, who collectively are owed some $248,000 of that total debt, will only see 1% to 2% of their claims, according to court documents.
The investor group, identified in court documents as Graystoke Equity Contribution, will take over ownership of the company. Street Breads founder and owner Josh Priola, will no longer have a stake in the company, though he will continue to manage the restaurants on a day-to-day basis, court documents say.
Neither Priola nor his bankruptcy attorneys returned calls seeking comment as of this morning’s deadlines. No one at Graystoke could be reached for comment.
Court documents suggest the restaurants will remain open at their existing locations and that funds needed to repay debts will come from restaurant operations and from Graystoke.
Street Breads opened in Lake Charles in 2010 and expanded to Baton Rouge in 2012. In November, Priola closed a second Baton Rouge location on Bluebonnet Boulevard that opened the previous fall. At that time, he told Daily Report sales at the Bluebonnet location were slower than expected, but that his other two restaurants were exceeding projections and that he hoped to soon announce a new partnership and expansion.