PITTSBURGH -- Jiffy Foods Corp., operator of Winky's and the Original Station Street Hot Dog Shops, has filed for protection under Chapter 11 of the bankruptcy laws.
Under the Chapter 11 filing, Jiffy will continue to operate under court protection from creditors while seeking to work out a plan of reorganization.
At one time, the nearby Sewickley-based company operated about 40 Winky's outlets, but its share of the competitive fast food market has been steadily shrinking.
Court documents list Jiffy's debts at $561,000. As a result, the firm said it may be forced to sell some unprofitable restaurants. The company currently runs 25 Winky's and 12 Station Street Hot Dog Shops in western Pennsylvania.
The list of creditors includes the company's president, Coca-Cola of Pittsburgh, Nordic Fisheries, Flavoripe Co., Inc., of Pittsburgh, and Heinz U.S.A.
'We will attempt to whatever is necessary to keep the company profitable,' said Bernard Erenstein, president of Jiffy Foods.
Erenstein indicated Jiffy would embark on a cost-cutting program in an effort to turn things around. Jiffy has recorded operating losses of over $500,000 in the past two years.
