MISSION VIEJO, Calif. (CNS)— Orange County -based restaurant chain Sizzler, reputed for its moderately priced meats and expansive salad club, filed for Chapter eleven personal bankruptcy on September. 21, blaming falling product sales on the COVID-19 outbreak.
According to the syndication Restaurant Business, the Objective Viejo-based chain, which functions 107 locations, reported among $1 million and $10 mil in liabilities and the exact same amount in assets.
The company stated this anticipates emerging from the Section 11 bankruptcy process inside 120 days.
“The filing is an immediate result of the financial influence the COVID-19 pandemic has already established on the casual dining industry, particularly long-term indoor eating closures and landlords’ refusal to provide necessary rent ease, ” Chris Perkins, the particular president and chief providers officer of Sizzler UNITED STATES, said in a prepared declaration.
The string plans to keep all of the locations open for company throughout the process of renegotiating rents, and franchisees will not be impacted during the Chapter 11 procedure, according to the company.
“Today’s filing represents a brand new chapter for Sizzler, plus it’s an option we’ve performed based on the underlying strength in our 62-year-old legacy brand, ” Perkins said.
“Many restaurant brands across the nation have suffered because of COVID-19 and Sizzler USA is not any exception. ”
According to the company, the submitting will allow Sizzler “to perform everything we can to support our own employees and franchisees” plus “build a stronger upcoming. ”
Product sales at Sizzler were currently declining before the pandemic, based on Eater Los Angeles. It continues to be unclear how many locations can return, if any, following a bankruptcy filing.
The company owns 14 cafe locations outright, while the left over 93 are franchises, but it will surely be looking to renegotiate rent terms with landlords in those locations, at least, Chef reported.