Sandwich chain Potbelly (PBPB) is considering closing up to 100 restaurants as it feels the impact of the coronavirus. The company announced the news, saying it was actively negotiating with its landlords.

Potbelly closed its dining rooms in March amid the COVID-19 pandemic and furloughed a portion of its employees following the closures. The company received a Paycheck Protection Program loan for $10 million but returned it after it faced criticism for accepting the money that was earmarked for small businesses.

“We understand challenges will persist over the next several months, and are taking the necessary steps to support and fortify our business,” Alan Johnson, president and CEO at Potbelly, said in a statement. “We are operating with a cash-preservation mindset.

Johnson continued, “Currently, we are having proactive conversations with our landlords, are considering closing up to 100 shops, and are continuously working to implement ways to work more effectively and efficiently. We have a firm grasp on what we can control within our business.”

With its restaurant dining rooms closed, Potbelly reported a 45% increase in drive-thru and pickup orders in April. Potbelly has 470 locations spread throughout the U.S.

Potbelly had total revenues of $87.6 million in Q1 2020, down from the 98.1 million it reported a year earlier. Comparable store sales at company-operated restaurants dropped 10.1% as the coronavirus hit but were up 2.5% during the first 10 weeks of the first quarter. The company also saw a net loss of $13.3 million in the first quarter of the year.

The company drew $40 million from its revolving credit facility in March and has enacted a series of cost-cutting measures across the chain. Potbelly was on track to have a strong performing year until the coronavirus took ahold, reporting a comparable same-store sales increase of 2.5% in January and 4.1% rise in February, positioning the company to record its first positive quarter since Q4 2016.

“The pandemic dramatically impacted our sales and oriented our priorities first around the health and safety of our employees and customers, and second, toward aggressively protecting our balance sheet,” Johnson said. “In March, as we abruptly saw our comparable same-store sales drop to -68%, we took immediate and decisive action.

“Among other things, we shut down dine-in options across our shops in accordance with state mandates, temporarily closed 36 company-operated shops, furloughed one-third of our corporate employees and cut salaries for all executives and corporate employees by 25%. All of these decisions were necessary and painful,” he added.

Shares of Potbelly stock were down 12.95% as of 10:17 a.m. EDT on Wednesday.

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