MONTGOMERY, AL (WSFA) - While Gigi’s Cupcakes LLC has filed for Bankruptcy, the owners of the Montgomery, Opelika and Columbus, GA locations say business will continue as usual.
Jennifer Cooper, alongside her husband Patrick, owns and operates the three locations.
“Our local stores, as well as the numerous ‘franchisees’ across the country, pay Gigi’s Cupcakes LLC monthly what is known as a ‘royalty’ to operate under the Gigi’s Cupcakes name,” according to a post from the Gigi’s Montgomery Facebook page.
Cooper says the announcement that Gigi’s cupcakes filed for bankruptcy will not affect what happens to her storefronts. She also admits the bankruptcy filing can be confusing for those who aren’t familiar with franchise business.
“While we are given some support locally in exchange for the royalty, the financial situation of Gigi’s Cupcakes LLC has no direct impact on our stores,” according to Cooper. “We are a 100 percent wholly and locally owned completely separate entity. We opened our first store nearly nine years ago and have been locally owned and operated ever since.”
The Coopers ask customers to continue to support their business.
“Things like this that we have no control over can damage the reputation of a thriving business and no business can afford that. We know that no matter the outcome of some bankruptcy case in Texas, that God is in control and we will prevail!” according to the post.
Nation’s Restaurant News reported that Gigi’s listed liabilities in its bankruptcy filing between $1 million and $10 million.