Logan’s Roadhouse Inc. filed for bankruptcy in Delaware on Monday after competition from rival casual-dining chains ate into its sales.
The operator and franchiser of over 250 roadhouse-themed restaurants in 23 states has suffered as other companies offered steep discounts and improved technology with tabletop tablets and order-ahead capabilities.
The Nashville, Tennessee-based chain tried to attract diners with Southern-inspired cuisine such as bread pudding, brisket nachos and glazed chicken wings, as well as Happy Hour deals.
Logan’s has entered into a restructuring support agreement with revolving facility lenders and holders of over 83.9 percent of about $378 million in notes that will reduce debt by over $300 million, Keith Maib, chief restructuring officer, said in court papers. The agreement also includes exit financing, Maib said.
As a part of the plan, Sam Borgese, who has been chief executive officer since 2014, will resign, according to a statement. The company also said it has identified 18 restaurants it will close and expects to help employees with reassignments to other Logan’s restaurants, outplacement services and assistance with applying for jobs. It did not announce which restaurants will close.
The chain has three restaurants in the Tulsa area.
The chain had assets of $347.2 million and debt of $546.1 million as of June 30, according to court filings. About 10 percent of Logan’s Roadhouse restaurants are franchised.
By: Wire Reports (for Tulsa World).
Photo 1: Fast Food in USA.
Photo 2: Logan’s Roadhouse.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
For The #FacebookTeam