Old Country Buffet has been an American strip mall staple for many years. At one point the only thing Americans loved a lot more than eating, was eating at a buffet. But in the 21st century, despite the commitment of delicious cheese biscuits awaiting you behind those ubiquitous red letters, Old Country Buffet has definitely had some setbacks. And we are not just talking about broken froyo machines at the lunch rush.
The owner of hometown along with other buffet dining chains filed on Monday for Chapter 11 bankruptcy, blaming a lawsuit that was not disclosed when its current owner bought the businesses in August.
Buffets LLC, an affiliate marketer of Food Management Partners, in August paid an undisclosed amount for your chains Old Country Buffet, Ryan’s, Fire Mountain and Tahoe Joe’s, in addition to HomeTown, based on Food Management Partners’ website.
Those chains, which operate 150 restaurants, were portion of the bankruptcy filing on Monday, according to court documents. The firm that sold the restaurant chains in August did not disclose a pending lawsuit, which resulted in an $11.4 million judgment, according to an announcement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
He also said the chains have observed 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 had been “private equity.”
The organization said sales have fallen 22 percent short of the seller’s projections, prompting the closure of 74 stores in recent weeks and another 92 over the following 10 days. Buffets LLC and the chains conduct business underneath the Ovation Brands name.
It had been the third filing since 2008 years for the restaurant chains, which previously entered bankruptcy called Buffets Inc. The chains listed assets worth up to $50 million and liabilities as much as $100 million, in accordance with documents filed within the U.S. Bankruptcy Court for the Western District of Texas.
Buffets Inc and the Ryan Restaurant Group merged in 2006 to create the largest U.S. buffet chain. At the begining of 2008, however, the business filed for Chapter 11 bankruptcy to shed a number of its 626 locations and cut its debt by $700 million. The business returned to bankruptcy in 2012, this time around to slim its reach from 494 restaurants.
Unfortunately for businesses like Old Country Buffet, buffets tend to be synonymous with obesity. Anyone who’s attempting to shed some pounds might see images of endless bins of greasy food as being a straight-up recipe for fatness, so most likely, they’re staying away.
And any diet-conscious individual that does eat at Old Country Buffet will likely cost the chain money, so that’s not any better. Buffets are able to spend less by focusing on the behavioral psychology of methods we eat out at hometown buffet near me. As an example, more canbhp protein stuff like fish or beef can be purchased in smaller serving sizes and additional down the road, once they give us access to huge, heaping areas of the cheap things like rice and potatoes. Buffets also make a indicate use smaller serving utensils with the more costly grub.