Briazz Chain Plans IPO Via Hambrecht

Briazz Inc. filed Monday for an initial public offering of stock estimated to raise as much as $23 million to expand its chain of 39 sandwich shops.

But the deal, expected to be offered through the “OpenIPO” auction system of online investment bank W.R. Hambrecht, comes with a strong warning about risk.

Briazz, which serves breakfast and lunch to downtown workers in its home city of Seattle as well as San Francisco, Chicago and Los Angeles, said it foresees “continued losses in the future,” and that its accountants have warned that the company’s losses “raise substantial doubt about our ability to continue as a going concern.”

The company, which listed $1.7 million of cash on hand as of Sept. 3, needs to raise capital to keep going and to expand, the filing said.

Briazz founder Victor Alhadeff earlier started Egghead.com, a computer accessories chain.

Briazz plans to open at least 10 new shops this year, according to the filing. Over five years, it could grow to as many as 150 locations in its current cities, in addition to possible expansion elsewhere, the filing said.