Tuscany Cafe closes as chain files for bankruptcy protection

The Tuscany Cafe chain filed for Chapter 11 bankruptcy protection last week and closed its 28 stores nationwide -- including its location at 34th and Sansom streets. Tuscany will seek to sell its assets -- including leases and equipment from all of its stores -- within the next few months, according to a statement from the corporation. "Market conditions and other factors out of management's control" caused the closure, the release said. University City Associates General Manager John Greenwood noted that "it looks grim for our friend at Tuscany." Tuscany Cafe Store Manager Chae Chung was unavailable for comment. UCA manages the 3401 Walnut Shops at Penn complex and the Hamilton Village shopping center. Greenwood said although he could not confirm the chain's "bankruptcy status," he did not anticipate that the store would reopen. He explained that UCA would assume responsibility for the property only after confirming that the chain would be closing its doors permanently. "If we were to confirm that they are in fact closing down, we'd take the spot and re-lease it," Greenwood said. But he refused to speculate about what type of retail establishment would replace the cafe if it did not reopen. Associate General Counsel Roman Petyk also said he could not confirm whether or not the chain had filed for bankruptcy, explaining that he had not received formal word from the chain's management. And he stressed that the store could return to its location even after filing for bankruptcy. "In some cases, the [store] moves out," he said. "In others, the company reorganizes and other times, they reassign the space to other operators." The chain will attempt to sell its assets through a bankruptcy sale, which the press release said would "be the most efficient and economical method to maximize payments to creditors and shareholders." Tuscany Cafe is located next to the former location of a Sam Goody music store, which has remained empty since the establishment closed in January. At the time, University Treasurer Scott Lederman had said that officials hoped to fill the space soon, but would not specify as to the retail options officials are considering as replacements for the store. University officials still have not announced whether or not they have found an establishment to fill the empty Sam Goody space.