All US Bennigan's abruptly close

[Robin Garr]

Just got this off a usually professional and trustworthy food-industry blog:

Evidently, all 800 Bennigan's restaurants closed last night...for good.

According to several media reports, employees at numerous Bennigan's restaurants say the chain has ceased operations. The Plano, Texas based Bennigan's is responding to calls with a "no comment."

This just popped up on my new wire:

Bennigan's files for bankruptcy protection
Published: 7/29/08, 12:46 PM EDT

NEW YORK (AP) - Restaurant chains Bennigan's and Steak & Ale have filed for Chapter 7 bankruptcy protection and will shut their doors.

The companies filed for bankruptcy protection in the Eastern District of Texas. Their parent company - privately held Metromedia Restaurant Group - is based in Plano, Texas.

In a Chapter 7 bankruptcy filing, a company seeks to liquidate its assets and shut down.

In the filing, the company indicated that it has up to 49 creditors. It said it will have no funds left after administrative expenses are paid to repay its creditors.

Gosh I didn't even know any were still opened! How long has it been since we had a Bennigans? About 24 years or so?

I'm currently in Chicago, where there are 17 Bennigan's. The help was especially caught by surprise; tv has been full of interviews with servers, managers, cooks, et al. One manager had a wife and six kids, and first heard when he showed up in the morning to unlock the door and found it padlocked with a sign on it. He was saying that he had no idea about his back pay, insurance, et al.

One person from the parent company was found (title/position and name not given), and - while refusing to give an "on the record statement" - did say that "all quick service restaurants are in serious trouble, as with the gas crisis Americans are going out to eat much less often than in the past, and in the past few years this type of restaurant has been significantly overbuilt."

What is Butters going to do!!???

I thought that the news said that only the corporate owned units closed. There are franchisees that are still open. We dont' have any in this area do we?

I thought that the news said that only the corporate owned units closed. There are franchisees that are still open. We dont' have any in this area do we?

You are right, Leah. The franchise units are remaining open. But, how in the world they will be properly supported by a parent corp that is crashing and burning is something I can't envision.

[Robin Garr]

The New York Times has a story on this today. Steak & Ale, Bennigan's sibling chain, is also affected.

And yes, folks, "It's the economy, stupid."

http://www.nytimes.com/2008/07/30/busin ... urant.html

Let's get out there and support our local independent eateries!

What is Butters going to do!!???

Raisins

Raisins

"Hi, Hon! Welcome to Raisins!"

*sits down in booth wearing orange shorts*

I was more interested in what else the NYTimes article had to say - that investors are really squeamish about putting money into chains and behind individual franchisers.