One other day, one other announcement of restaurant closures within the casual-dining area.
Earlier this week, FAT Manufacturers filed for Chapter 11 chapter safety. As a part of that course of, the restaurant firm is looking for to reject leases for numerous shuttered company-owned eating places, together with places for Johnny Rockets, Smokey Bones, and Yalla Mediterranean, courtroom filings present.
FAT Manufacturers owns 18 restaurant chains in whole, together with Fatburger, Spherical Desk Pizza, Nice American Cookies, and extra. Most of its greater than 2,200 places worldwide are franchised. FAT Manufacturers mentioned in its chapter submitting that owns roughly 150 places instantly.
“Our dynamic portfolio of manufacturers has demonstrated large resilience in a difficult restaurant working setting over the previous couple of years,” Andy Wiederhorn, CEO of FAT Manufacturers, mentioned in a press release when asserting the chapter. “We’re nicely positioned for long-term profitability and development. The chapter 11 course of will present us with the chance to strengthen our capital construction to help our ideas and guarantee they continue to be on the forefront of their sectors.”
Which FAT manufacturers places have shuttered?
In its bankruptcy announcement, FAT Manufacturers mentioned it expects eating places to proceed working usually all through the method.
Nonetheless, the corporate disclosed in a chapter submitting on Monday that it has shuttered numerous company-owned eating places: 14 Smokey Bones places nationwide, together with two Johnny Rockets and 5 Yalla Mediterranean places. The latter two’s impacted shops are solely in California.
Quick Firm has reached out to FAT Manufacturers to ask if different shops might be impacted. We are going to replace this put up if we hear again.
Johnny Rockets closures
California
- Orange: 20 Metropolis Blvd E
- Santa Monica: 1322 Third Road
Smokey Bones closures
Florida
- Casselberry: 1430 State Highway 436
- Fort Lauderdale: 6500 N Federal Hwy
- Plantation: 809 South College Drive
Georgia
- Buford: 3333 Buford Drive, Web site 1000
Illinois
- Rockford: 6690 E State Road
Massachusetts
- Stoughton: 301 Expertise Heart Drive
Michigan
- Grand Rapids: 4875 twenty eighth Road SE
- Utica: 45001 Schoenherr Highway
Ohio
- Columbus: 3939 Mose Crossing
- Maumee: 512 West Dussel Drive
Pennsylvania
- North Wales: 252 Montgomery Mall
- Wilkes-Barre: 265 Mundy Road
Virginia
- Newport Information: 12541 Jefferson Avenue
- Woodbridge: 2601 Prince William County Parkway
Yalla Mediterranean closures
California
- Culver Metropolis: 5246 Dublin Blvd
- Dublin: 1781 N. Victory Place
- Fremont: 12420-A Seal Seaside Blvd
- Seal Seaside: 3141 Mowry Avenue
- Walnut Creek: 1813-A Ygnacio Valley Highway
Some casual-dining eating places are struggling
Life is regularly getting costlier and fewer individuals are spending their cash at casual-dining eating places.
FAT Manufacturers joins the ranks of Noodle & Company, Outback Steakhouse, and Cracker Barrel‘s Maple Road Biscuit Firm—all of which have just lately closed places.
Some fellow casual-dining eating places, similar to Red Lobster and TGI Friday, haven’t solely closed shops in recent times however, like FAT Manufacturers, have filed for chapter.
Nonetheless, each of these manufacturers have since plotted out a comeback, and FAT Manufacturers has hinted at one as nicely. “We plan to make use of this course of to attach with key stakeholders round a value-maximizing plan and can act prudently to stay steadfast in upholding and defending stakeholder pursuits,” Wiederhorn mentioned in his assertion.
Shares of FAT Manufacturers Inc (Nasdaq: FAT) fell 33% on Tuesday following the announcement. The inventory was buying and selling at below 25 cents a share in premarket on Wednesday.
