Did the Olga's Kitchen in the Compuware Building in downtown Detroit help push the chain into bankruptcy?
Dustin Walsh and Kirk Pinho of Crain's Detroit Business report that it seems to be the case.
The publication reports:
The large costs of opening Olga’s Kitchen at the Compuware Building in downtown Detroit led to insurmountable debt and, inevitably, the Troy-based restaurant chain’s Chapter 11 bankruptcy filing.
COO Michael Kosloski confirmed to Crain’s on Friday that the Mediterranean-style restaurant chain has been reorganizing operations since July 2014 in preparation for a sale. But the debt burden tied to the Compuware location build-out abbreviated its timeline.
“We’ve been able to turn around the company, and now, all 28 restaurants are profitable, but we couldn’t continue to service the debt,” Kosloski said. “… we needed to protect ourselves while we raise some capital and prepare for a sale.”