You can’t say there was anything wrong with the pizza. It changed other menu items like the salads and sandwiches, but it didn’t touch the pizza. This is post-bankruptcy Giordano’s, which seems to have emerged, after a Chapter 11 bankruptcy filing in 2011, healthier than ever.
In fact, sales are up more than 20 percent in 2013, as Emily Bryson York reports for the Chicago Tribune. It could have something to do with the fact that Giordano’s is among those famous deep-dish pizza joints Chicago’s known for. If the pizza’s good, customers will keep coming.
But “bad bets” on real estate, as York writes, caused considerable trouble for the company. York doesn’t get into the specifics of these bad bets, but it’s enough to say that the then-owners of Giordano’s could not lease or sell their properties in the economic slump.
This, in turn, caused them to default on their loans.
According to the Giordano’s Wikipedia entry, the company’s bankruptcy lawyer essentially confirmed that there was nothing wrong with the pizza, but that real estate was to blame for the bankruptcy filing.
Chapter 11 bankruptcy allowed Giordano’s to reorganize and get past its real estate trouble so that it could continue to serve its customers. Indeed, York quotes current CEO Yorgo Koutsogiorgas as saying that Giordano’s “was always a strong performer.”
Based on the money Chicagoans and tourists will spend this year at Giordano’s – close to $100 million in sales if estimates are correct – it’s clear that Koutsogiorgas knows strong performance when he sees it.
Chicago’s Giordano’s Pizza Strong After Bankruptcy