Panera franchise collapses in Houston: Lawsuits, layoffs, and millions owed

The Brief

  • 15 Houston-area Panera Bread stores are closed after the franchisee files for bankruptcy.
  • Hundreds of workers are left jobless.
  • The franchisee owes $10–$50 million to creditors.

HOUSTON The operator of more than a dozen Panera Bread locations across the Houston area is in legal and financial hot water, facing a federal lawsuit from Panera Bread, and filing for bankruptcy protection.

What we know:

EYM Café of Texas LLC, a franchisee of Panera, operated 15 stores in the Houston area. Chad Rainey was an assistant general manager at one of them. He says he moved locations for a promotion in the company and shortly after, on his birthday, he was told the store was closing and he no longer had a job.

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