Seven months after Gigi’s Cupcake chain filed for bankruptcy protection, Elite Restaurant Group has moved in and acquired it. Elite Restaurant Group already owns Slater’s 50/50 chain, Patxi’s Pizza and Daphne’s Mediterranean.
Elite has previously taken a stance of taking on brands that may be in financial trouble in the hope that they can be turned around. The acquisition of Gigi’s continues this trend, as they had previously listed liabilities between US$1 and US$10 million. Although Elite has a reputation for being able to turn places around, Gigi’s woes are not going to disappear overnight. Furthermore, Daphne’s Mediterranean has not been performing well. Recently, all of the 11 Texas locations were closed.