May 8, 2020 / 10:06 PM / 24 days ago

Potbelly postpones quarterly filing due to COVID-19 crisis

(Reuters) - Potbelly Corp (PBPB.O) said on Friday it is unable to file its quarterly report with the U.S. SEC by the May 8 deadline due to the COVID-19 crisis, adding to the restaurant chain’s pandemic-led woes.

Chicago, Illinois-based Potbelly said the closure of its headquarters and staff reductions has resulted in its inability to meet the deadline, according to its regulatory filing. (bit.ly/3baaLZe)

The company said it now expects to file the report no later than June 22.

Closure of dine-in areas and restrictions on movement have severely dented sales at restaurants, including Potbelly’s, forcing it to warn of impact to its financials in the first and future quarters.

Potbelly, along with millions of small and mid-sized businesses, snapped up the initial Payroll Protection Program (PPP) funding of $350 billion in less than two weeks.

After public pressure, Potbelly and other public companies returned federal rescue loans aimed at small businesses to help them protect payroll. Potbelly said it would continue to seek alternatives to support its employees.

The company also said on Tuesday it is likely that it will be unable to continue to comply with certain covenants contained in a credit facility with JP Morgan.

Potbelly, which had fully drawn the available capacity of $40 million under the revolving credit facility on March 17, also said it is in discussions with the bank about potential changes to the covenants as well as temporary waivers.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Shailesh Kuber

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