Sizzler, one of the first American steakhouse chains, files for bankruptcy

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The 62-year-old company said it filed for Chapter 11 because of Covid-19, which forced it to temporarily close dining rooms in its restaurants. Sizzler USA also had problems paying rent.

The case concerns only the 14 restaurants belonging to the Sizzler company, and not its international sites or more than 90 franchised American restaurants. Sizzler explained in a press release that he uses the bankruptcy process to reduce his debt and renegotiate his leases.

“Our current financial situation is a direct result of the economic impact of the pandemic due to the long-term closures of indoor restaurants and the refusal of landlords to provide necessary rent reductions,” said the president of Sizzler. , Chris Perkins, in a statement. The company aims to emerge from bankruptcy in approximately 120 days and company-owned sites will continue to operate.

Sizzler restaurants are found primarily on the West Coast, with a majority of them in California. The chain started in Culver City, California in 1958 with the goal that “everyone can enjoy a great steak dinner at an affordable price,” according to its website. Once a pioneer in the industry, the chain has fallen out of favor with new rivals like Applebee’s and TGI Friday’s.

The industry has suffered another blow this year due to the pandemic. Restrictions on indoor dining and economic difficulties in making money from delivery or takeout have forced a number of chains to file for bankruptcy, including California Pizza Kitchen and Vapiano. Restaurant reservations are about 40% below average, according to data from CNN Business.
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