The Denver-based company said Thursday it was struggling amid the slowing economy and higher operating costs.
Vicorp filed a Chapter 11 bankruptcy petition in a Delaware court to restructure debt obligations. It says lenders have agreed to provide $60 million in debtor-in-possession financing pending court approval.
Together with cash from operations, Vicorp says it will be able to meet obligations to employees, suppliers and partners.
The company also will close 56 restaurants and conduct an extensive review of underperforming locations as it reorganizes.
Vicorp operates 343 restaurants in 25 states under the Village Inn and Bakers Square brands.
In Colorado, Vicorp will close four stores:
- Academy Blvd. in Colorado Springs (8050 N. Academy Blvd.)
- Cherry Creek in Denver (222 Columbine Street)
- 6th Avenue and Simms in Lakewood (11903 W. 6th Ave.)
- Crown Crest in Parker (9205 Crown Crest Blvd.)
The company will keep 34 other Village Inn restaurants open in Colorado.
