Let Them Eat Steak: Steakhouses File Chapter 7
It seems the poor economy is forcing Americans to buy leaner cuts of meat.
Across the country, many steakhouse chains are feeling the heat of low business. The Deal magazine has a rundown of the steakhouse shakeout over the last few years.
Some midsize chains have been bought out, sold or taken over by larger chains. Ruth’s Chris steakhouse bought four competitors for $94 million, and the Sizzler chain is looking for a buyer.
LongHorn Steakhouse became part of Darden Restaurants Italian and seafood restaurant holdings, and Smith & Wollensky partnered with the Patina restaurant group.
But plenty of steakhouse chains also decided to file Chapter 7 bankruptcy.
- Sam Seltzer’s Steak Houses – After a fast expansion the company couldn’t handle debt obligation and filed Chapter 7 earlier this year.
- Steakhouse Partners Inc – The California-based chain filed for the second time in six years.
- Roadhouse Grill – A Florida bankruptcy judge forced the company to file Chapter 7 instead of Chapter 11 bankruptcy.
- Steak & Ale Restaurant – The parent company of this chain and many Bennigan’s restaurants entered Chapter 7 earlier this summer.
In this economy, it seems many businesses can’t have their steak and eat it too.