A restaurant owner filed for Chapter 7 bankruptcy on Oct.5. This comes after financial problems forced the restaurant owner to close two restaurants and a banquet facility in January. The petition is a personal bankruptcy petition as opposed to a corporate bankruptcy because the man guaranteed some of the debt personally.
Like many restaurants in Tennessee, this one was struggling because of a decrease in the number of customers each day. The financial hardships faced by many have led to a cut-back in purchases that may have contributed to the 65-year-old man’s financial woes in the fickle restaurant industry. The petition listed assets of $559,500 against liabilities of more than $3 million.
Currently, he owes $99,000 to the city for rental payments on one of the restaurants. Four creditors are also listed in the filing as holding secured claims. The largest is a $1.2 million loan held on a steakhouse he owns in another state.
It appears from the information published that this particular restaurant owner had reached the end of his financial rope in his attempts to resolve problems surrounding his business debt. As many in Tennessee are aware, the recession and its aftermath have led to numerous problems for businesses and individuals. It is understandable that someone whose business is providing dining out options would be experiencing financial difficulties.
Any company or individual experiencing financial hardship may well benefit from consulting a bankruptcy attorney. The attorney may be able to assist with debt management, file for any necessary bankruptcy protection and devise a plan for a new financial beginning.
Source: Toledo Blade, “Area restaurateur files for bankruptcy,” Jon Chavez, Oct. 11, 2011