American Restaurant Chain Bankruptcies Part 2
Big Boy Restaurant Chain
Possibly the most well known restaurant chain on our list is Big Boy restaurants. The chain is famous for the double-decker hamburgers they specialize in, and the little boy on their logo. The owner of the chain, the Elias Bros. Corp., filed for bankruptcy after experiencing financial difficulties, and money issues with their expansions. The company closed 43 restaurants just a month before their bankruptcy filing. From 2001, to 2010 the number of Big Boy locations dropped from to 405 to 141.
- Change in sales (2001-2010): -68.6%
- Sales 2001: $580 million
- Sales 2010: $182.25 million
- Change in units (2001-2010): -65.2%
Black Angus Steakhouse
The restaurant’s former owner, ARG Enterprises, filed for Chapter 11 bankruptcy in 2004 and again in 2009 before being purchased by Versa Capital Management. The mortgage crisis hit many Black Angus Steakhouse locations hard. The number of locations dropped from 107 restaurants in 2001, to around 46 in 2010 located in six western states.
- Change in sales (2001-2010): -62.3%
- Sales 2001: $302.16 million
- Sales 2010: $114 million
- Change in units (2001-2010): -57%
Country Kitchen is a restaurant chain that specializes in “comfort food.” The brand was owned by Carlson Cos., from 1977 to 1997, a company that deals primarily with hotel chains. This is why many Country Kitchen locations are attached to travel plazas and hotels. With a more health-conscious society, the chain has experienced a continuous decline in business. The number of Country Kitchen restaurants dropped from 249 in 2001 to 64 in 2010.
- Change in sales (2001-2010): -67.2%
- Sales 2001: $250 million
- Sales 2010: $82 million
- Change in units (2001-2010): -74.3%
Bakers Square is a casual-dining restaurant that is best known for its pies, although they do serve breakfast, lunch and dinner. Their parent company VICORP, now known as American Blue Ribbon Holdings, LLC, filed for Chapter 11 bankruptcy in April 2008. The company closed 56 stores, including the original Bakers Square in Des Moines, Iowa. As of 2010, only 45 Bakers Square locations were open, a steep fall from the 148 that existed in 2001.
- Change in sales (2001-2010): -72.2%
- Sales 2001: $220 million
- Sales 2010: $61.2 million
- Change in units (2001-2010): -69.6%
Specializing in ribs, seafood and steak, Tony Roma’s casual-dining restaurants have experienced a continuous drop in business over the last decade. The number of Tony Roma’s restaurants has dropped from 162 to 45 from 2001 to 2010. However, internationally, the restaurant maintains a large presence.
- Change in sales (2001-2010): -67.3%
- Sales 2001: $318.22 million
- Sales 2010: $104 million
- Change in units (2001-2010): -72.2%
Los Angeles Bankruptcy Law Firm
Contact the bankruptcy lawyers at McFarlin Law today to schedule a free consultation. If you are a business owner who is overwhelmed by debt, we can help. Call us at (888) 728 0044 or email us here.
Post Tags: bankruptcy attorney, Los Angeles bankruptcy lawyer