As the times change, restaurants and other casual dining facilities may lose relevancy and no longer meet the needs of modern consumers. To restructure a struggling business, the U.S. Bankruptcy Code offers Chapter 11 bankruptcy. It allows the business owner to continue operations while debt is reorganized. Two of the Louisiana branches of Logan’s Roadhouse announced the closure of its doors as part of the restructuring of the nationwide chain of steakhouses.
Logan’s Roadhouse in Baton Rouge and the branch in Lafayette were shuttered while the Gonzales and Alexandria locations will remain open. It is not uncommon for companies with many outlets to close underperforming locations when times are tough. Modified or canceled leases and fewer salaries can free up funds to benefit the company’s cash flow.
The initial announcement by the Nashville-based group that filed for Chapter 11 bankruptcy on Aug. 8 said 18 underperforming branches of the restaurants would be closed. However, court documents indicate plans to suspend the leases of 21 establishments. The documents also indicate the intention for property remaining at the locations to be abandoned.
The steakhouse chain reported its assets on June 30 to have been $347 million while its debts totaled $546 million. Business owners who are serious about regaining financial stability may benefit from exploring the available options. A skilled Louisiana attorney who is experienced in helping businesses resolve their business debt problems through Chapter 11 bankruptcy can assess the client’s particular situation and explain the pros and cons of such a filing. A lawyer can also provide support and guidance throughout the legal proceedings.
Source: businessreport.com, “Logan’s Roadhouse shutters Baton Rouge restaurant near Mall of Louisiana“, Alexandria Burris, Aug. 31, 2016