Posted on 07/30/2008 4:16:12 AM PDT by TigerLikesRooster
Bennigan's, Steak & Ale file for bankruptcy
By Lisa Baertlein
Tue Jul 29, 6:32 PM ET
The company behind the Bennigan's and Steak & Ale chains filed for one of the largest restaurant bankruptcies ever on Tuesday, closing outlets and cutting jobs.
S&A Restaurant Corp, and three dozen other entities including various Bennigan's and Steak & Ale affiliates, submitted Chapter 7 bankruptcy petitions in the U.S. Bankruptcy Court for the Eastern District of Texas, seeking to sell assets.
The company is a subsidiary of Metromedia Restaurant Group and operates and franchises Bennigan's and Steak & Ale restaurants. The companies fall under the umbrella of billionaire John Kluge's privately held Metromedia Co.
Bennigan's Grill & Tavern was founded in 1976 and has restaurants in 32 states. Steak & Ale was founded in 1966.
Bennigan's has roughly 300 restaurants in its chain, and only company-owned restaurants appear to be affected by closures. An official restaurant count for Steak & Ale was not immediately available.
Bennigan's Franchising Co, owner of the Bennigan's and Steak & Ale trademarks and franchise agreements, said it was not part of the Chapter 7 filing. The company, which represents all domestic and international franchisee-owned restaurants, said its 138 Bennigan's restaurants "remain open and fully operational."
(Excerpt) Read more at news.yahoo.com ...
Ping!
I am surprised Steak and Ale lasted this long.
It was on restaurant row where all you have to do is serve a good steak and it would be standing room only.
Just another example of the fact that too many American financial empires are built on an enormous pyramid of debt. And of course, one of the first things budget items to cut when things turn down is eating out.
Unfortunately, that is the only measure of economic prosperity for many.
Bennigans was one of those fern bars that sprang up in the 1980's that I guess got pushed out of business by the other fern bars.
Our local West Texas Roadhouse regualry had a 45 minute -1 hour wait. Now you can walk right it.
I take clients to a local Applebees. Lunch time attendance is way way down. (applebees is closing 197 stores)
Looks like Americans will be forced to eat whatever the Gov’t allows pretty soon. I guess this is the new way to lean down all those fatazz gov’t employees?
I was gonna say. Applebees should be next. It isn't a real restaurant. It serves burgers, chicken sandwiches and bar food in a noisy cramped atmosphere.
Chili's seems to have adapted very well. Always packed and I've never had a bad meal there.
Not enough flair I suppose.
Honestly, I have not seen a Steak & Ale in these parts in a long time.
I think Applebee is basically a college kids' hang-out joint.
If their bankruptcy will come through in 15 minutes or it’s free.
>>Honestly, I have not seen a Steak & Ale in these parts in a long time.
The one that was nearest me has been a higher-end Indian restaurant for some time, with a large banquet hall.
OK, so what’s the difference between Chapter 7 and Chapter 11? Is Ch. 7 where you’re closing your doors and surrendering assets to creditors?
Huh. I've been to a Chili's exactly once. It was terrible - I'm not sure I've ever had a more candy-sweet barbecue sauce. Some, if not all, of the Chili's in this area (Portland, OR) closed in late May.
I prefer going to local, independent restaurants rather than chains like Applebees or Chili's, whose menus are largely indistinguishable. It feels good to support local businesses where possible.
The Bennigan’s in Wilmington also closed several years ago. It was the first restaurant at which my son and I ate upon arriving here.
It was levelled and there’s an Applebees in its place, but if you look on Yahoo! Maps, it still says “Bennigans Wilmington”. I got a good laugh out of THAT!
Concur.....Chillis is mediocre and expensive.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.