Jake’s Pizza International Inc. said recurring losses from operations and a net capital deficiency raise substantial doubts about its ability to continue as a going concern. In a filing with the Securities and Exchange Commission, the Rolling Meadows-based restaurant chain said its accountants, Arthur Andersen LLP, agreed with the ominous opinion and also resigned as the company’s auditors last week. Jake’s Pizza reported this week a fiscal third-quarter loss before extraordinary items of $176,418, or 14 cents a share, and said a significant portion of its 39 franchised restaurants can’t meet their obligations. It also said it believes it will need about 65 “healthy” operating franchised restaurants to bring the company to a break-even cash flow.
