Commercial lender CIT Group Inc. filed for bankruptcy Sunday to cut $10 billion in debt after a U.S. bailout and debt exchange offer failed this summer. CIT said operations will proceed as normal and it plans to exit bankruptcy next month, according to a story by Bloomberg.
Analysts worried this summer that the failure of CIT would impact restaurant franchisees by drying up another funding source. CIT has provided funding for operators of restaurants ranging from Dunkin' Donuts to Pizza Hut.
From Bloomberg:
Dunkin' Brands Inc., the Canton, Massachusetts-based owner of the Dunkin Donuts and Baskin-Robbins chains, doesn't expect the CIT filing to affect its stores. CIT is one of the lenders used by Dunkin' Brands franchisees seeking loans to remodel their stores."CIT's bankruptcy filing in no way affects our stores, their ability to grow or our ability to meet consumer demand," said Andrew Mastrangelo, a spokesman for the company.
Dunkin' CEO Nigel Travis told Advertising Age in an article Monday that the company remains focused on its growth plans despite economic challenges.
