Popular restaurant chain operator files for Chapter 11 bankruptcy

Casual restaurant chains have faced an array of problems this year with rising costs of food and labor, higher interest rates on their debt, and consumers being more selective about spending.

Several eateries have closed underperforming locations and a few have been forced to file bankruptcy to reorganize their businesses, which may maybe have included shuttering units.

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Bloomin' Brands (BLMN) , which owns Outback Steakhouse, Bonefish Grill, Fleming's, Carrabba's Italian Grill and Aussie Grill earlier this year decided to take aggressive steps to right-size its portfolio and end the drain of underperforming stores by closing 38 U.S. locations and three international ones. The restaurant chain has now now not filed for bankruptcy, though.

Related: Iconic fast-food chain operator files Chapter Eleven bankruptcy

Red Lobster, alternatively, did file for Chapter Eleven bankruptcy protection on May 19 with about $300 million in debt and closed over 100 restaurants permanently. The chain now operates about 545 restaurants in 44 states.

Rubio's Coastal Grill claimed it became victimized by California's AB 1228, which increased the minimum wage for immediate-food workers working at chains which have more than 60 locations at some stage in the state from $Sixteen to $20 per hour.

The Mexican fast-casual chain on June 5 filed Chapter Eleven bankruptcy and closed forty eight locations at some stage in the Golden State. It had a complete of 134 locations in California, Arizona and Nevada ahead of filing.

Renowned Italian restaurant chain Buca di Beppo on Aug. Four filed for Chapter Eleven bankruptcy protection at some stage in the U.S. Financial disaster Court for the Northern District of Texas in Dallas seeking to reorganize with the improve of its lenders after it closed thirteen underperforming locations that included restaurants in Sacramento and Salt Lake City. It currently operates 44 core locations in 14 states, two international locations, and it planned to open one new location

At last, the receiver for a series of 14 Applebee's Neighborhood Grill & Bar franchise restaurants in four states on Oct. Four filed for Chapter Eleven bankruptcy protection as a creditor and plaintiff in a lawsuit against a former franchisee seeks to accommodate the assets of its preference claim.

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Michael Goldberg, receiver for franchisee Oklahoma Apple LLC and affiliates Louisiana Apple LLC, Kentucky Apple LLC, and Mountain Apple LLC, filed his petition at some stage in the U.S. Financial disaster Court for the Southern District of Florida listing up to $50,000 in assets and liabilities.

More bankruptcy stories:

• Renowned fast-food chain shuts locations, no bankruptcy plans yet
• Iconic retail food company closing down, no bankruptcy filing yet
• Financial disaster filing can’t rescue renowned retail food brand

A judge at some stage in the U.S. District Court for the Southern District of Florida in September appointed Goldberg receiver for the franchise restaurants located in Arkansas, Indiana, Kentucky, and Oklahoma on the request of City National Bank of Florida.

The bank on Aug. 28 sued the former franchisee Louisiana Apple and its affiliates at some stage in the same district court for alleged breach of contract for defaulting on $eight.33 million in loan principal, interest, and charges and for eliminating the loan's collateral. The former franchisee allegedly transferred ownership to SBG Apple Central I LLC and affiliated entities so that you may be wholly owned by Starboard Group Holdings without the bank's consent, in accordance with court papers.

Several months after City National Bank entered into a forbearance agreement with Louisiana Apple, the former franchisee allegedly entered into a separate agreement with Dine Brands Global's (DIN) franchisor, Applebee's Franchisor LLC and SBG to transfer full regulate over its franchise assets, as well as operation of the restaurants, to SBG, in accordance with court papers.

Any to boot disputes by the parties involved may possibly be resolved at some stage in the bankruptcy court, which now has jurisdiction.

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