Spun-Off Chain to Close Piret’s in Grossmont Center

Continuing a cost-cutting that typically accompanies leveraged buyouts by management, Vicorp Specialty Restaurants on Friday closed its Piret’s store in Grossmont Center and said it may close its La Jolla Village Square outlet sometime in the future.

The Grossmont store was losing money and closing it was a “smart business decision,” according to Bill Seckinger, Vicorp Specialty Restaurants’ vice president of marketing. Piret’s now operates six fashionable eateries--four in San Diego County and two in Orange County.

However, the firm is now discussing “on what basis we’ll continue” operating the La Jolla restaurant, said Seckinger. That outlet is in “a bad mall--it’s one of the least-producing malls in the country,” he said.

The announcement comes only two days after Piret’s closed its commissary, which produced various baked items for the Piret’s sites. The commissary was closed to cut costs, officials said.

Vicorp Specialty Restaurants expects to complete a leveraged buyout next week from its parent, Vicorp Restaurants in Denver. Included in the investor group taking the specialty restaurant chain private are Vicorp Chairman Gordon Miles, who will resign his post, Vicorp Specialty Restaurants President Tom Doan, and the investment banking firm of Donaldson, Lufkin & Jenrette.

The spun-off company will operate four types of restaurants at 87 locations--Piret’s, the Boat House, Carlos Murphy’s and Hungry Hunter (known as Mountain Jack’s in the Midwest).

Vicorp bought Piret’s in May, 1984, after the restaurant chain experienced rapid growth and associated financial problems.

Founders George and Piret Munger will remain with the spun-off company “at this point,” said Seckinger.

Vicorp in Denver will use proceeds from the sale of its specialty restaurants to complete the remodeling of the 170 outlets of bankrupt Sambos’ restaurants it purchased last year.

Those restaurants are being reopened under the name of either Village Inn or Baker’s Square.