Friday, May 22, 2020

Potbelly Sandwich Shop Chain Faces An Uncertain Future

A Chicago-based chain of sandwich shops that has a handful of locations in the Greater Boston area appears to be in a fight for survival now.

According to an article in Restaurant Business, Potbelly is talking about closing as many as 100 shops permanently, and also told investors in its quarterly report that it may actually have to shut down completely at some point. The chain mentions in the filing that due to the effects of the COVID-19 pandemic, "The probable inability of the Company to meet its current covenant requirements raises substantial doubt on the Company's ability to meet its obligations within one year from the financial statement issuance date and to continue as a going concern." The Potbelly Sandwich Shop chain had been in the news last month as well, as it returned a $10 million forgivable loan that it had been granted via the Paycheck Protection Program (PPP) part of the CARES Act, saying at the time that "We were surprised and disappointed when the fund was quickly exhausted, leaving many without help."

Locations of Potbelly Sandwich Shop can be found in downtown Boston (two), Burlington, and Braintree.

by Marc Hurwitz (Also follow us on Twitter at @hiddenboston)

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