Two Texan Restaurants Spared from Being Closed Down After Bankruptcy

by San Antonio Attorney

Two Texan restaurants located in Wichita Falls have escaped the ‘wielded axe’ after both parent companies filed for bankruptcy.

The Nashville branch of Logan’s Roadhouse, recently for Chapter 11 bankruptcy last August 8 and has plans to close down 18 of its poor income generating locations.

CoStar Group, recently reported that Logan’s restaurant requested permission to cancel lease contracts on at least 21 properties as stipulated by the official bankruptcy filing.  However, the Wichita Falls’ branch was not included on the list.

Prior to closing the branches, Logan’s had a total of 234 restaurants which generated ample income for maintaining its operations.  The company pointed out that the cause of its financial troubles stemmed from ‘discretionary’ customer’s income thus correlating to decreased sales and lesser influx of customers.

Logan’s recently revealed that it intends to sell majority of its properties.  Fired Inc, which maintains the operations of 36 branches of Johnny Carino’s in Texas, was not spared from the bankruptcy filing.

The bankruptcy filing for Chapter 11 occurred on July 14.  The gradual decline of the oil industry and the introduction of ObamaCare caused the business downturn of the restaurant chain, according to the Austin Business Journal.

Fired Inc, has a debt of approximately $19 million to its creditors.  Another $905,000 owed to its employees for wages and benefits.

Johnny Carino’s branches in Amarillo and Waco have recently closed but the sole branch located on the Kell Boulevard in Wichita Falls is still rumored to be open.

In 2016, majority of the restaurant chains have encountered financial difficulties.  A popular restaurant named Ruby Tuesday also closed down 95 branches of its stores.  Other chains such as Fox & Hound, Old Country Buffet and HomeTown Buffet also did their bankruptcy filing.

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