IBJNews

Ryan's, Old Country Buffet parent files for bankruptcy

Back to TopE-mailPrintBookmark and Share

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.

ADVERTISEMENT

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Kent's done a good job of putting together some good guests, intelligence and irreverence without the inane chatter of the other two shows. JMV is unlistenable, mostly because he doesn't do his homework and depends on non-sports stuff to keep HIM interested. Query and Shultz is a bit better, but lack of prep in their show certainly is evident. Sterling obviously workes harder than the other shows. We shall see if there is any way for a third signal with very little successful recent history to make it. I always say you have to give a show two years to grow into what it will become...

  2. Lafayette Square, Washington Square should be turned into office parks with office buildings, conversion, no access to the public at all. They should not be shopping malls and should be under tight security and used for professional offices instead of havens for crime. Their only useage is to do this or tear them down and replace them with high rise office parks with secured parking lots so that the crime in the areas is not allowed in. These are prime properties, but must be reused for other uses, professional office conversions with no loitering and no shopping makes sense, otherwise they have become hangouts long ago for gangs, groups of people who have no intent of spending money, and are only there for trouble and possibly crime, shoplifting, etc. I worked summers at SuperX Drugs in Lafayette Square in the 1970s and even then the shrinkage from shoplifting was 10-15 percent. No sense having shopping malls in these areas, they earn no revenue, attract crime, and are a blight on the city. All malls that are not of use should be repurposed or torn down by the city, condemned. One possibility would be to repourpose them as inside college campuses or as community centers, but then again, if the community is high crime, why bother.

  3. Straight No Chaser

  4. Seems the biggest use of TIF is for pet projects that improve Quality Of Life, allegedly, but they ignore other QOL issues that are of a more important and urgent nature. Keep it transparent and try not to get in ready, fire, Aim! mode. You do realize that business the Mayor said might be interested is probably going to want TIF too?

  5. Gary, I'm in complete agreement. The private entity should be required to pay IPL, and, if City parking meters are involved, the parking meter company. I was just pointing out how the poorly-structured parking meter deal affected the car share deal.

ADVERTISEMENT