Buffets Restaurants Holdings Inc. has filed for Chapter 11 bankruptcy protection for a second time and plans to close 81 underperforming restaurants as it tries to cope with its debt.
The company, based in Eagan, Minn., operates 494 restaurants in 38 states under names such as Old Country Buffet, Ryan's, HomeTown Buffet, and Tahoe Joe's Famous Steakhouse restaurant.
Its restaurant lineup includes Ryan's locations in Indianapolis at 655 N. Shadeland Ave. and 8180 U.S. 31 South. There also is a Ryan's in Anderson at 6315 Scatterfield Road.
Several Old Country Buffets that previously operated in Indianapolis have already closed.
The company is expected to announce within a week which restaurants will close.
Buffets said that its decision to file on Wednesday with the U.S. Bankruptcy Court in Delaware marks the beginning of a new era for the company and is the result of a strategic review that the company's board began in May.
The company said that investors who hold 83 percent of its senior debt have agreed to a restructuring that will eliminate nearly all of its $245 million in debt in exchange for all the equity in the company. That would free up cash flow for the company to invest in improving its restaurants.
Buffets said it expects to emerge from bankruptcy within six months.
The company filed for bankruptcy protection in 2008 as it struggled with debt and the impact of the recession on consumers. Buffets is one of several restaurant chains that have struggled over the past few years as consumers cut spending and began eating at home more often.
Restaurant companies such as Friendly's Ice Cream Corp., Perkins & Marie Callender's, Real Mex and the SSI Group Holding Corp., which operates Souper Salad and Grandy's restaurants, have all filed for bankruptcy protection in recent years.
Buffets said it has secured a $50 million debtor-in-possession loan that, along with cash, will allow it to meet its normal operating costs during the restructuring process.
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See, I told u Indyman and Dipsicle....this 8 days is overkill. It's barely worth a weekend....great job Tony George! Your dream has been fulfilled....he fans want the I r l back. Thats how good it was.....and that sucked.
I have been in training for a short time now but right off I can see that safety and quality are the number one issues, my experience as of late has been a positive one, the employees along with Jeff the plant manager and the operation supervisor as well as the engineers are a highly motivated group of people, what an asset for the area to have and for company's in need of a quality metal products.
Pimlico
While I understand the severity of their actions as well as everyones eagerness to hold them responsible for thier lost funds, these gentlemen did know how to make money. Dispite thier poor decisions over the ownership of Fair they had made several wise investments which paid them greatly. This proves they do have the potential to rebuild so they can repay. I do not feel they should live the life of luxuary but given an opportunity could they find ways of repaying the debts? They are doing nothing now but being a burden on tax payers. Just a thought!!!!!
You guys have some "interesting" comments to say the least. I hope you will call in and share those opinions starting June 1. I'm looking forward to having you on the air.