When Louisiana business owners find their companies failing to perform at expected standards, owners may have to make difficult financial decisions. To help deal with their economic woes, many companies are turning to Chapter 11 bankruptcy for a fresh start. Casual Italian dining chain Romano's Macaroni Grill recently chose this solution.
Officials say that Romano's owes more than $23 million in secured debt. As is the case with many other casual dining restaurants, the company believes that a downturn in the industry, as well as increased competition from faster and cheaper alternatives, has been a considerable factor in its financial issues. Romano's executives stated that by utilizing the features of this bankruptcy, they will be able to maintain operations and preserve about 4,600 jobs.
As part of the bankruptcy plan, Romano's will receive a $5 million bankruptcy loan, $3 million of which it has already gained approval to use so that it can continue operations while under Chapter 11 protection. The business will soon appear before a judge to obtain approval for the remainder of the loan. The plan already has the support of the company's largest secured creditors.
Whether a restaurant owner, retailer or other type of business owner, those facing an overwhelming financial struggle could benefit from consulting an experienced Louisiana bankruptcy attorney. An attorney could provide more information about the various forms of bankruptcy available for a company, including Chapter 11. Even if an owner decides against filing for bankruptcy, an attorney could help assess the financial situation of the business to determine the best course of action for the future.
Source: foxbusiness.com, "Romano's Macaroni Grill to Explore Sale Under Bankruptcy Protection", Lillian Rizzo, Oct. 19, 2017