VENTURA (CBSLA.com) — Dozens of Carrows and Coco’s Bakery restaurants are being closed throughout California by their new parent company.
The closures follow the acquisition of the eateries’ parent company Catalina Restaurant Group by the Texas-based firm Food Management Partners. Neither company revealed the exact number of closures or employees affected.
First announced in March, the deal was finalized last week, Restaurant News reported.
At the time of the transaction, Catalina operated nearly 150 locations between the two brands, with nearly 100 Coco’s restaurants and other 50 locations for Carrows, according to Restaurant News.
Food Management Partners have been reported to be closing as many as 70 Coco’s and Carrows locations in California, Arizona and Nevada.
While it wasn’t immediately clear how many restaurants in all would be closed, Peter Donbavand, vice president of business development for Catalina, signaled that both brands would remain intact going
“The current market climate has forced us to make difficult decisions about many of our restaurants that are not performing at a competitive financial level,” said Donbavand in a statement released last week. “After extensive review, we have developed a plan that we believe will enable the parent company of Coco’s and Carrows … to make the two brands stronger than ever at both the company and franchise level.
“Unfortunately, this roadmap to sustainability may include restaurant closings.”
Known largely for their breakfast and baked goods, Coco’s and Carrows have been staples in Southern California dining for nearly 70 years.