Old Country Buffet has been a united states strip mall staple for many years. At one point the sole thing Americans loved greater than eating, was eating at a buffet. But in the 21st century, despite the promise of delicious cheese biscuits awaiting you behind those ubiquitous red letters, Old Country Buffet has definitely had some setbacks. And we are not just speaking about broken froyo machines at the lunch rush.
The homeowner of hometown menu and other buffet dining chains filed on Monday for Chapter 11 bankruptcy, blaming a lawsuit which was not disclosed when its current owner bought the businesses in August.
Buffets LLC, an online affiliate of Food Management Partners, in August paid an undisclosed amount for that chains Old Country Buffet, Ryan’s, Fire Mountain and Tahoe Joe’s, in addition to HomeTown, according to Food Management Partners’ website.
Those chains, which operate 150 restaurants, were portion of the bankruptcy filing on Monday, based on court documents. The firm that sold the restaurant chains in August failed to disclose a pending lawsuit, which resulted in an $11.4 million judgment, based on an announcement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
He also said the chains have experienced sharp drops in sales he considered unusual. The statement did not say who sold the businesses to Food Management Partners, and a spokeswoman would only say it was “private equity.”
The business said sales have fallen 22 percent lacking the seller’s projections, prompting the closure of 74 stores in recent weeks and the other 92 in the next 10 days. Buffets LLC as well as the chains do business under the Ovation Brands name.
It had been the third filing since 2008 years for the restaurant chains, which previously entered bankruptcy referred to as Buffets Inc. The chains listed assets worth approximately $50 million and liabilities of up to $100 million, according to documents filed within the U.S. Bankruptcy Court for that Western District of Texas.
Buffets Inc and the Ryan Restaurant Group merged in 2006 to generate the greatest U.S. buffet chain. During early 2008, however, the business declared Chapter 11 bankruptcy to shed a few of its 626 locations and cut its debt by $700 million. The business returned to bankruptcy in 2012, this time to slim its reach from 494 restaurants.
Unfortunately for businesses like Old Country Buffet, buffets tend to be symbolic of obesity. Anyone who’s seeking to shed some pounds might see images of endless bins of greasy food being a straight-up recipe for fatness, so probably, they’re staying away.
And any diet-conscious person who does eat at Old Country Buffet will probably cost the chain money, so that’s not any better. Buffets have the ability to reduce costs by focusing on the behavioral psychology of methods we eat at hometown buffet prices. For instance, more canbhp protein stuff like fish or beef can be found in smaller the size of portions and additional down the road, when they give us use of huge, heaping portions of the cheap stuff like rice and potatoes. Buffets also make a point out use smaller serving utensils with all the more expensive grub.