The future of at least 10 Houston-area Panera Bread locations are unknown as the local Houston franchisee operator is caught in the crossfires of a bankruptcy filing and a federal lawsuit.
What happened?
EYM Group is a multi-brand franchisee company that oversees more than 200 restaurants – including Denny’s, Pizza Hut and Panera Bread – throughout several states including Texas. Court filings show the company operator, Eduardo Diaz, filed for bankruptcy with the Eastern District of Texas court in August, just months after a federal judge ordered Diaz and 10 of his Panera Bread locations to cease operations in late June.
Panera Bread officials filed the May 23 lawsuit against EYM Group with the U.S. District Court for the Eastern District of Missouri. Panera Bread alleges that EYM Group breached franchise agreements over a series of alleged violations including failure to make timely payments; comply with food handling and safety standards; comply with cleanliness, appearance and sanitation standards, according to federal court filings. The federal judge sided with Panera and granted a permanent injunction.
Going forward
The Aug. 2 Chapter 11 bankruptcy filings state that EYM Group will meet with creditors in September. Appearances have also been filed by Fort Bend and Montgomery Counties, according to court documents. Panera Bread officials did not respond to requests for comment.
A sign on the closed location close to the Eldridge Crossing Shopping Center at FM 1960 and Eldridge Parkway in north Houston has a sign that says it will reopen under new ownership.
