The Pig Stand founded in Dallas TX in 1921, the world’s first drive-up food service operation, was an enclosed shack with flip-up windows exposing serving counters and accommodate only drive-up customers. It was the world’s first drive-up restaurant chain. It cooked only pork products served with sauce. It later grew to over 100 units nationally.
By 2006 it had declined down to 8 sit-down restaurants in southeast Texas. Unable to pay its debts, in 2005 it filed Chapter 11 Bankruptcy with its then-current owner as trustee and continuing CEO. By March of 2006, it was unable to file the required Plan of Reorganization, and the judge declared that if an outside experienced competent replacement could not be engaged within 30 days, that he would immediately convert it to a chapter 7 immediately forced liquidation. Vincent Liuzza was approached by the U.S. Trustee in San Antonio and agreed to assume full responsibility as Chapter 11 Trustee that month. This avoided the pending Chapter 7 auction of the assets and resurrected the possibility of a more orderly managed sale of assets for going-concern value where possible through a Chapter 11 Plan of Reorganization, which also preserved the brand.
Liuzza began immediately visiting each of the 8 locations in San Antonio, Lytle, Seguin, Houston, Galveston, and Beaumont and time with each General Manager, the office employees, and the owner and establishing ongoing communications with each. Weekly group meetings with all GMs focused on improving costs, employee morale, and customer satisfaction.
As Trustee, he dealt with all major secured and unsecured creditors to convince them to back off and allow time for him to hopefully avoid Chapter 7 liquidation, in order to negotiate appropriate realistic settlements. They agreed, and the court approved the Plan of Reorganization in the following September, producing an improved outlook for settlements for all, and enabling three restaurants to continue operating.
