Owner of Johnny Carino’s Files for Bankruptcy Again

by San Antonio Attorney

Johnny Carino’s, a popular Italian dining chain owned by Fired Up Inc., recently filed for its second bankruptcy after three years.  The company is currently looking for another buyer to acquire its assets.

According to the court papers filed through the federal bankruptcy court in Texas, the Chief Executive Officer of the food chain based in Austin pointed out a few factors for its financial struggles, which include the waning appeal of casual dining, reduced oil prices and additional expenses associated with the Affordable Care Act.

Creed Ford, Chairman and CEO of Fired Up Inc, stated through the bankruptcy filing that the company’s platforms after the filing of the first bankruptcy case have been prevented due to rapid change in economy and trend of the casual dining market.

Ford, partially owning the controlling interest of the company, explained that Fired Up has been looking for ways to sell out majority of the company’s prime locations and initiate liquidation of unused assets to utilize repayment of its creditors.

Established in 1997, Ford and Norman Abdallah created the company in order to comply with the acquisition of Kona Restaurant Group.  As the company reached its peak status, the trend of casual dining declined and the economic recession caused the reduced sales.

There were also other exogenous factors that directly affected the company even after filing the first bankruptcy plan.  Another factor was the drop of oil and gas prices in the gas industry, which adversely affected the sales of the company.

Another factor was the improvised cost of the Affordable Care Act, which was priced at an overestimated rate after filing for bankruptcy.

The company has a total $19 million of secured debt, these includes $12.6 million to FRG Capital and another $5.1 million to Prosperity Bank.

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