(Bloomberg) --
Restaurant chain Vapiano SE could start insolvency proceedings in Germany unless it secures help in countries where it operates.
The company will now apply for support under financial assistance programs announced by various governments in Europe, Chief Financial Officer Lutz Scharpe said in a statement on Friday.
Vapiano declared a cash flow insolvency as sales plunged after it closed almost all of its 230 diners because of the coronavirus outbreak. Under German law, management must file a request for the opening of insolvency proceedings within three weeks.
The company's shares fell as much as 52% on Friday. An Italian food franchise operating in 33 countries, it had around 475 million euros ($510 million) of total debt as of September.
Even before the coronavirus crisis, Vapiano was seeking 11 million euros of new funds. It had agreed key details with its main shareholders and lenders, but said on Monday it was looking for an additional 14 million euros to stay afloat as restaurants started to close in response to the spreading pandemic, according to a statement.
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