Commercial bankruptcy options may provide beneficial resources and tools to struggling companies seeking to perform well once again. The commercial bankruptcy process for the Tennessee-based restaurant chain, Logan’s Roadhouse, currently continues. The restaurant chain filed for bankruptcy earlier this summer, listing $347.2 million in assets and liabilities of $546.1 million. The restaurant chain expects to emerge from bankruptcy later this year after is has renegotiated leases and shed $300 million in debt.
The restructuring process has included closing 34 of the restaurant chain’s 256 restaurants.
The number of underperforming restaurants the chain said it would close has grown from its initial statement of 21 to greater than 30. The party in charge of the restructuring process for the company noted that closing the underperforming restaurants shifted upward the company’s average unit volumes, reduced costs of average occupancy and significantly increased profitability.
The company attributed financial problems to the weakening restaurant industry and has also introduced a smaller menu and begun new advertising efforts. As previous posts here have discussed, business bankruptcy options provide struggling businesses the option to reorganize their debts and renegotiate leases to help them onto the path to profitability once more. It allows the company to focus on restructuring in a manner intended to return the company to profitability once it has emerged from bankruptcy.
Chapter 11 commercial bankruptcy allows a company to continue operations while reorganizing debt and restructuring to help the company survive. Careful guidance throughout the commercial bankruptcy process is important to ensure the outcome of the process is a positive as possible for the future of the company engaged in it.
Source: al.com, “Logan’s Roadhouse bankruptcy closing 34 locations: Are any Alabama restaurants on the list?” Leada Gore,Oct. 12, 2016
