July 16, 2004

MercuryNews.com | 07/13/2004 | Fresh Choice tries plate of Chapter 11

NO FURTHER CLOSINGS SLATED FOR BAY AREA, COMPANY SAYS

By Michele Chandler

Mercury News

Struggling with too few customers and mounting losses, Bay Area restaurant chain Fresh Choice has shuttered some of its eat-all-you-want buffets and filed for bankruptcy protection from creditors.

Analysts blamed Fresh Choice's troubles at least partly on the public's appetite for low-carb meals, which the chain has only recently added to the menu. Morgan Hill-based Fresh Choice closed 10 of its 56 restaurants last week, including a 7-month-old location in San Jose at the Westfield Shoppingtown Valley Fair mall. A restaurant in Richmond's Hilltop Mall also was shuttered."

``We firmly believe that upon emerging from Chapter 11, Fresh Choice will be stronger in terms of cash flow and operating flexibility,'' said Jefferson.
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There is a new twist that has affected a lot of businesses (failure by carbohydrates). You just never know what might cause one of your customers to file for bankruptcy protection.


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