Are Lubys Cafeteria And Fuddruckers Going Out Of Business
In September 2020, Lubys Inc. announced that, upon board approval, they would be liquidating assets for the Lubys Cafeteria and Fuddruckers restaurants. Unless an offer to buy the brands is received, the restaurants will close permanently by the end of 2020. The company operated over 100 Lubys locations and there are over 90 Fuddruckers franchises.
Brio Tuscan Grille/bravo Cucina Italiana
Locations closed or closing: 48 In a blow for pasta lovers everywhere, the parent company of Brio and Bravo filed for Chapter 11 bankruptcy in April 2020. It also permanently closed nearly 50 locations during the pandemic. There is a glimmer of hope, however: Brio and Bravo have a new owner, Earl Enterprises, which has pledged to operate at least 45 of the 53 restaurants that remain.
Starbucks Recently Announced It Is Closing 500 Locations As It Expands Its Pickup Options
According to Restaurant Business, in June, the coffee chain originally planned to permanently close 400 stores in the United States and Canada over the next 18 months. Then, in October, the company announced it would close an additional 100 locations as begins to “shift away from poorer performing urban markets.”
However, while some locations are closing, Starbucks plans to open up to 300 pick-up and carryout locations instead.
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More Closures Means Bad News For Retail Landlords
In the meantime, the company will likely focus on closing more stores, which doesn’t help the already oversupplied retail space. Single net retail real estate investment trusts have fared slightly better than other retail competitors like mall REITs, but inevitable oversupply as restaurants in particular continue to close or file bankruptcy isn’t good for the industry as a whole.
Right now, an estimated 10,000 retail stores are set to close in 2021. There is a chance we’ll see other companies, including retail REITs, use the strategy of repurchasing and retiring debt at a discount as Steak n’ Shake did, especially if the company or REIT is on the brink of bankruptcy. But only time will tell if the strategy will pay off for the company in the end.
Popular Burger Chain ‘shakes’ Chapter 11 Bankruptcy: What Investors Should Know
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Like many other restaurants right now, Steak n’ Shake is struggling to stay afloat as the coronavirus pandemic continues to “shake” the food and beverage industry. The company, which was already on rocky ground before the start of COVID-19, was on the verge of filing Chapter 11 bankruptcy at the start of 2021, having $220 million in debt due March 19, 2021. However, Biglari Holdings, the parent company for Steak n’ Shake, skated bankruptcy for now after repurchasing and retiring the debt at a discount for $153 million in late February.
Steak n’ Shake had been in negotiations with its debtors for some time as it prepared for the possibility of Chapter 11 bankruptcy. Fortress Investment Group, one of the creditors paid off this spring, was recently sued by Steak n’ Shake for allegedly scheming to take control of its assets using confidential information.
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Charitable Contributions And Services
Burger King has two in-house national charitable organizations and programs. One is the Have It Your Way Foundation, a US-based non-profit ” rel=”nofollow”> 501) corporation with multiple focuses on hunger alleviation, disease prevention and community education through scholarship programs at colleges in the US. The other charitable organization is the McLamore Foundation, also a non-profit, 501 corporation that provides scholarships to students in the US and its territories.
Is Dunkin Going Out Of Business
Dunkin is not going out of business. In July 2020 the company announced they would be closing an estimated 800 locations in 2020. While specific locations were not disclosed, over half of the closures are part of their February announcement that by the end of 2020 they would be permanently closing 450 limited-menu Dunkin cafes that are located inside Speedway convenience stores. The company operates over 9,000 locations.
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Is Ruby Tuesday Going Out Of Business
Ruby Tuesday is not going out of business. In October 2020, the company filed for Chapter 11 bankruptcy protection in order to restructure debt and remain in business. The company has closed 185 locations in 2020, in part due to the COVID-19 pandemic. The chain currently operates over 230 corporate locations.
The Chain Owes More Than $8 Million To Creditors
In its bankruptcy filing, the chain disclosed financial obligations to the tune of $8.4 million, but assets of just $6.7 million, Restaurant Business reports. During its first decade in business, Meatheads had eschewed the franchise model on which many other casual dining and fast food restaurants operate, but had reconsidered this stance just a few years ago.
“We plan to expand as rapidly as the success of our operating restaurants allow us,” Meatheads founder and former CEO Tom Jednorowicz told Fast Casual in 2017. “We are more focused on execution at the restaurant/community level and developing one successful restaurant after another than we are on the accumulation of big numbers.”
And for another group of restaurants struggling, check out This Popular Pizza Chain Just Filed for Bankruptcy.
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Burger King Owner Files For Bankruptcy
Larry Baker, retiring founder and owner of Restaurants Northwest Inc., said the filing for Chapter 11 protection from creditors will let him sell assets the new owners dont want in an orderly fashion.
The bankruptcy protection filing was a surprise to employees, said former controller Jim Hinkle, who was shocked to learn he was unemployed at the end of 2003. He said he plans to apply for his job back when a new owner takes over – in the next several weeks, he hopes.
Burger King headquarters have yet to designate the new owner, but Baker said the corporation could make the announcement soon.
Among them, the city of Wasilla has sued for back sales taxes, totaling $17,600 by last February, the Anchorage Daily News reported.
The Bankruptcy Court filing shows that Restaurants Northwests top 20 bills total $742,800 and that Wasilla wasnt the only creditor claiming tardy tax payments.
The company owes the Internal Revenue Service $62,900. Other creditors include the state and boroughs from Fairbanks to Ketchikan , according to the filing. Supplier Alaska Fresh Cut is waiting for $27,900.
Mills said that organizing a typical bankruptcy-protection case might take a year or more, although he expects to come up with a plan in a few months.
It takes longer to reorganize a company that wants to stay open, Mills said.
The next step is for the new franchisees to tell Baker which restaurants and what equipment they want to buy.
Ruby Tuesday Files For Bankruptcy Shutters 185 Restaurants
Ruby Tuesday’s debt is between $100 million and $500 million, according to the bankruptcy filing.
Casual dining chain Ruby Tuesday has filed for Chapter 11 bankruptcy protection and announced that 185 of its 421 restaurants that temporarily closed this year will stay closed for good.
According to the bankruptcy filing in a Delaware court, the companys debt is between $100 million and $500 million.
Todays actions will allow us an opportunity to reposition the company for long-term stability as we recover from the unprecedented impact of COVID-19,” CEO Shawn Lederman said in a statement earlier this week.
The following seven Ruby Tuesday restaurant locations in New Jersey have closed this year:
- Deptford: Deptford Clements Bridge Rd.
- Freehold: Freehold Raceway Mall
- Mays Landing: 4403 Black Horse Pike
- Neptune: 3595 State Route 66.
- Phillipsburg: 1278 Route 22
Its unclear whether any of the seven closures were directly related to the pandemic. According to a report by Business Insider, Ruby Tuesday quietly shuttered 150 restaurants during the first half of the year.
CNN also reported the company had financial problems even before the pandemic hit.
That leaves just five Ruby Tuesday spots left in New Jersey, according to the companys website. They are located in Eatontown, Elizabeth, Somerset, Toms River and inside Newark Liberty International Airport.
Ruby Tuesday was founded in 1972 in Knoxville, Tennessee.
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Friendly’s Just Filed For Chapter 11 Bankruptcy Amid The Pandemic And A 25% Decline In Its Restaurants In The Past Two Years
In April, the chain announced it would be closing 23 of its restaurants in the Northeast. A spokesperson told Mashed that the closures were due to “shifting consumer demographics.” On February 9, 2020, a Friendly’s in Rochester, New Hampshire, closed. It was the last one in the Seacoast Region.
On November 2, 2020, it was simultaneously announced that Friendly’s had filed for Chapter 11 bankruptcy protection and had been purchased by the parent company of Red Mango and Smoothie Factory.
“Unfortunately, like many restaurant businesses, our progress was suddenly interrupted by the catastrophic impact of COVID-19,” Friendly’s CEO George Michel said in a statement.
Controversies And Legal Cases
Burger King has been involved in several legal disputes and cases, as both plaintiff and defendant, in the years since its founding in 1954. Depending on the ownership and executive staff at the time of these incidents, the company’s responses to these challenges have ranged from a conciliatory dialog with its critics and litigants, to a more aggressive opposition with questionable tactics and negative consequences. The company’s response to these various issues has drawn praise as well as accusations of political appeasement from different parties over the years.
A trademark dispute involving the owners of an unrelated restaurant also named Burger King in Mattoon, Illinois, led to a federal lawsuit. As a result, the larger Burger King chain was ordered not to build any franchises within a 20-mile radius of the Mattoon Burger King. An existing trademark held by a shop of the same name in South Australia forced the company to change its name in Australia to “Hungry Jack’s”, while another state trademark in Texas forced the company to abandon its signature product, the Whopper, in several counties around San Antonio. The company was only able to enter northern Alberta, in Canada, in 1995, after it paid the founders of another chain named Burger King.
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Meatheads Had Recently Received More Than $1 Million In Paycheck Protection Program Funding
After suffering an 18.9 percent dip in sales between 2019 and 2020, and the closure of all of its in-person dining between March and early May of 2020, the chain applied for and received more than $2.4 million in Paycheck Protection Program funding between 2020 and 2021.
Parent company Crave Brands had also received $149,000 in Economic Injury Disaster Loan payments. And for more restaurants buckling amid the pandemic, This Iconic Restaurant Chain Is Closing Even More Locations.
Mcdonald’s Announced In Late July It Plans To Shutter Around 200 Restaurants
According to a previous article by Business Insider, McDonald’s announced in an earnings call that it planned to close around 200 restaurants, around half of which are located in Walmart stores.
However, the company plans to open 950 new restaurants by the end of the year, 400 of which will be in China.
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In Trouble: California Pizza Kitchen
This casual dining chain, a staple at malls and shopping centers across the country, filed for Chapter 11 bankruptcy in July 2020. California Pizza Kitchen has more than 200 locations, many of which were several months behind on rent payments. It closed some company-owned stores before the filing and was in negotiations with landlords regarding “certain other locations.”
Burger King Franchisee Files For Bankruptcy
Thu., Nov. 25, 2004
One of the regions largest Burger King franchisees filed for bankruptcy last week, citing weak sales caused by the chains slumping national market share.
Garliz Investments LLC of Post Falls employs about 500 people at 25 Burger Kings in three states. Its restaurants include six Burger Kings in Spokane, along with operations in Airway Heights, Coeur dAlene, Post Falls, Hayden, Cheney, Colville and other locations in Washington, Idaho and Oregon
Manuel Garcia, managing member of the family-owned firm, could not be reached for comment Wednesday. In court documents, however, he said Garliz Investments wants to continue operating the restaurants while the company works out a plan to pay back creditors. The company filed for Chapter 11 reorganization under the bankruptcy code.
Burger Kings share of the hamburger market fell from 19 percent to 15 percent in the last several years. According to Business Week, franchisees controlling 600 Burger Kings have filed for bankruptcy, or are experiencing financial troubles. Last year, Burger King hired a Los Angeles firm to work with franchisees, their creditors and Burger King Corp.
In court documents, Garliz Investments lists debts of $19.3 million, and assets of $5.8 million. The company said its sales have dropped by 30 percent.
Garliz Investments also owes Burger King $2.1 million in unpaid royalty fees and advertising-fund contributions, according to court documents.
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In September Luby’s Announced Plans To Dissolve The Business And Sell Its Remaining 77 Locations
In March, Houston-based chain Luby’s temporarily closed 35 restaurants as a result of the pandemic. Now, the chain is looking to liquidate.
In July 2019, Luby’s, which also owns Fuddruckers and Cheeseburger in Paradise, closed several restaurants to try and pay off debt, according to Mashed. Months later, in November 2019, CEO Chris Pappas said, “We are not pleased with our shareholder value, same-store sales, guest traffic results, or corporate overhead.”
These Restaurant Chains Filed For Bankruptcy During The Pandemic
- Trade groups estimate that up to 30% of restaurants could permanently close because of the pandemic.
- A report from S& P Global Market Intelligence released on Friday identified 15 publicly traded restaurant chains that are most likely to default.
- Well-known restaurant chains that have already filed for bankruptcy include CEC Entertainment, the parent company of Chuck E. Cheese Garden Fresh Restaurants and Le Pan Quotidien’s U.S. arm.
In this article
As the coronavirus pandemic upends the restaurant industry, some chains that were already struggling financially have been pushed into bankruptcy.
Trade groups estimate that up to 30% of restaurants could permanently close because of the pandemic. While independent restaurants are more at risk, dining room closures and consumers eating more at home has also strained chains, particularly those in the casual dining sector.
The Paycheck Protection Program provided many restaurants, including large chains like P.F. Chang’s and Five Guys, with much needed funds to continue operating. But coronavirus cases are once again surging, causing governors to once again close dining rooms to customers.
The crisis will likely change the restaurant industry forever. Experts say that the pandemic and related health concerns may prove to be the death knell for buffet-style restaurants, and the once-thriving “eatertainment” segment is under pressure.
Here are the restaurant chains that have filed for bankruptcy during the pandemic:
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In Trouble: Cheesecake Factory
This chain has always been known for excess, from its exuberant decor to its massive menu to its calorie-packed dishes. But it may not have excess cash to draw on during the pandemic. It’s among the companies that have recently rankled landlords by holding back rent payments, and analysts with S& P Global Market Intelligent give the chain a 12% chance of defaulting in the next year.
Brainerd Burger King Reign Ends After Bankruptcy
The shuttered Burger King in Brainerd is one of nine in the state that abruptly closed recently.
The ownership, listed as Red King Foods LLC with Burger King’s corporate office, is listed as P3 Foods LLC in bankruptcy documents. P3 Foods has been in bankruptcy court since the fall of a 2016, after doing business as Burger King for eight years.
A spokesman for Burger King, reached by phone Friday morning, said the Brainerd restaurant was a franchise and not corporately owned. In the past, corporate has come back into a community with a corporate store or opened the franchise up to a new owner. A Burger King manager was not available for further comment on the restaurant’s fate. The other Burger King restaurants affected by the sudden closing included seven in the Twin Cities area and one in St. Cloud in addition to Brainerd.
The Brainerd restaurant still has “now hiring” signs and posters for meal deals in its windows as though simply closed for the end of day. A small sign on the drive-thru and on the main doors tell prospective customers the news-“We are sorry to say Burger King is closed.”
On May 1, P3 Foods was before the court and was authorized to disburse $145,165 to satisfy outstanding payroll obligations to employees and to wire $152,272 to pay PNC Equipment Finance, which took over Element Financial’s claim.
P3 Foods is expected back in bankruptcy court Tuesday, May 8.
Bankruptcy court records
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