Fox & Hound Restaurant Owner Files for Bankruptcy Again

by San Antonio Attorney

The sole owner of the famous restaurant chain Fox & Hound, Bailey’s Sports Grille and Champp’s Kitchen, recently filed for bankruptcy protection on Aug.10.

The company reportedly filed for Chapter 11 bankruptcy protection through the United States Bankruptcy Court in Delaware.  The company has a total number of debts of $100 million to $500 million.  Kevin Gross is the judge designated for all the bankruptcy proceedings.

Based in Dallas, the company currently maintains 48 Fox & Hound restaurants, 23 branches of Champp’s restaurants and nine Bailey’s branches spread across 25 states in the country.  The company currently has a total of 4,700 full time and part time employees.

This is the second time that a restaurateur has filed for bankruptcy protection for the past three years.  The company cited that its main cause of bankruptcy filing was on the decreased sales and the increased pricing during the period of recession.

Last March 2014, lenders spearheaded by Cerberus Capital Management won case for bankruptcy approval, in order to purchase the series of restaurants after the first Chapter 11 filing.

Logan’s Roadhouse, another well-known restaurant chain in the country, also filed for bankruptcy protection.  It has sought to streamline operations through closure of 28 of its branches.  This was done in order to cut company cost and maintain expenses in its balance sheet.

Buffets LLC, a food chain based in Texas, sought out its third bankruptcy case since 2008.  Quaker Steak & Lube, another food chain based in Pennsylvania, also filed for bankruptcy protection last 2015.

Chapter 11 bankruptcy may seem prevalent and can give a bad impression.  However, this filing involves a reorganization of a business partnership.  The debtor in this bankruptcy filing typically will propose a plan to reorganize the financially troubled company in order to maintain operations and fulfill payments to its creditors.

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