Last Call Guarantor Closes Restaurants after Filing for Bankruptcy

by San Antonio Attorney

After restaurant operator Last Call Guarantor LLC filed for bankruptcy on Aug. 10, three of its restaurants in Southeast Michigan were closed down.

On Aug. 29, Champps Kitchen and Bar in Troy and Livonia and the Bailey’s Sports Grille in Canton Township were closed down along with 22 other restaurants across the United States as part of cost reduction plan by the Dallas-based restaurant operator.

The Champps in Lansing and West Bloomfield Township are still open.

Last Call is also the owner of Bailey’s restaurants, which has locations in Dearborn and Troy.  Bailey’s in Canton Township was closed down as part of the cost reduction plan.

Last Call spokeswoman Kelli Brignac said closing some of the restaurants were necessary in order to concentrate on the company’s strongest market and locations.

Workers of the restaurants that were closed are being offered opportunities to work at open locations.  These employees were given “short notice” that their workplace would be closed, according to Brignac.

Last Call’s Chapter 11 bankruptcy case is its second bankruptcy filing–the first one was filed in 2013.  The recent petition was filed in U.S. Bankruptcy Court for the District of Delaware.

Court filing shows that Last Call has a total of $117 million debt.  Its top creditors are Gordon Food Service Inc., which it owes $524,146, and Direct TV Inc., which it owes $201,891.

The restaurant operator blamed the increasing cost of employee healthcare, due to the implementation of Affordable Care Act, for its financial problems.

The closures of local restaurants may have been unexpected as a spokesman of the company said on an Aug. 12 interview that there were no plans to close any of the locations or lay off workers.

Kelly Investment Group, an investment firm headquartered in San Diego, reportedly acquired $75 million of the business liabilities and agreed to give $5.4 million in funding to keep the operations going.  The company is expected to be auctioned in September, as stated in a court filing.

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