According to the U.S. Bankruptcy Court docket, privately-held Buffets and six affiliated Debtors filed for Chapter 11 protection in the Western District of Texas.
The Company, which operates buffet-style restaurants, is represented by David W. Parham of Akerman, This is the Company’s third Chapter 11 filing. It emerged from previous bankruptcies in April 2009 and July 2012.
According to documents filed with the Court, “Due to the numerous underperforming restaurants, the Debtors closed and vacated 74 stores several weeks prior to the Petition Date and closed another 92 stores immediately preceding the bankruptcy filing which the Debtors will vacate within the next 7-10 days….The Debtors have commenced these cases in order to fully implement their restructuring efforts and to deal with both legacy costs and those liabilities resulting from the store closures. The Debtors believe that once they shed themselves of the burdens associated with the Wyoming litigation and the unprofitable stores, they can focus their efforts on their successful stores which will provide sufficient cash to fund the Debtors’ ordinary course expenses and enable the Debtors to become a profitable enterprise.”
Buffets’ Chapter 11 petition indicates total assets of $10 to 50 million. Read more bankruptcy news.
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