Wednesday, October 12, 2016

Cosi Seeks to Sell Its Assets in What Could Be an Auction

A troubled Boston-based chain of dining spots that has filed for bankruptcy and been delisted from the stock market may now be going on the auction block.

According to a post on the Nasdaq GlobeNewswire, Cosi is looking to sell its assets, seeking qualified bidders who may want to make the purchase via a sale process under Section 363 of the Bankruptcy Code, which typically refers to the auctioning off of assets. A tweet from @WSJBankruptcy seems to confirm this, saying that "Cosi is seeking permission to move ahead with a November auction."

Over the past couple of weeks, Cosi declared Chapter 11 bankruptcy and subsequently had its common stock delisted from The Nasdaq Stock Market. (Its shop in Boston's Back Bay closed shortly before the bankruptcy filing as well.)

[November 9 update: An article posted in Yahoo Finance mentions that an auction for all or "substantially all" of Cosi's assets may take place on November 30, depending on whether one or more qualified bids are received; if not, the bid of a "Stalking Horse Bidder" (an initial bid from a buyer chosen by Cosi) would be accepted and no auction will take place.]

[Earlier Articles]
Cosi to Be Delisted from The Nasdaq Stock Market
Cosi Files for Chapter 11 Bankruptcy
Cosi in Boston's Back Bay Has Closed

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[A related post from our sister site (Boston's Hidden Restaurants): List of Restaurant Closings and Openings in the Boston Area]