Bennigan's files for bankruptcy protection
(NEW YORK) Restaurant chains Bennigan's and Steak & Ale have filed for Chapter 7 bankruptcy protection and stores owned by its parent company will shut their doors.
The companies owned by privately held Metromedia Restaurant Group of Plano, Texas, filed for bankruptcy protection Tuesday in the Eastern District of Texas, less than two months after Metromedia said it was not preparing to do so. Metromedia Restaurant Group is a part of Metromedia Co., owned by billionaire John Kluge, that has interests in entertainment, radio stations and medical equipment.
In a Chapter 7 filing, a company seeks to liquidate its assets and shut down.
Locations owned by franchisees were not part of the bankruptcy filing and will not be shut down, said Larry Briski, president of the Bennigan's Franchise Operator Association.
"They will be open today, tomorrow and months and years to come," Briski said of the franchise locations.
The 138 domestic and international franchisee-owned restaurants are "open and fully operational," Bennigan's Franchising Co. LP and Steak & Ale Franchising Co. LP said in a statement.
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Member Comments
Posted By: dadiscool @ 07/29/2008 7:01:19 PM
Comment: What about employee's who were given no notice of the closing. It's a same a billionaire is allowed to hang on to his money while giving the shaft too so many who need the money earned at Bennigan's to survive.
Posted By: edweirdness @ 07/29/2008 3:22:49 PM
Comment: Bennigan's shuts down for owing 50 G's? This don't make sense. Hell, I'll buy the chain for 50 G's!