Nashville based Logan’s Roadhouse files for bankruptcy; 18 restaurants to close
NASHVILLE, Tenn. — Logan’s Roadhouse Inc. filed for Chapter 11 bankruptcy protection Monday, according to a statement released by the company.
The company said it will be closing 18 under-performing restaurants as part of the overall efforts to improve its financial performance, according to the company statement, but it did not give any details on the locations.
The Nashville-based chain filed petitions with the U.S Bankruptcy Court in the District of Delaware seeking reorganization under Chapter 11 of the U.S. Bankruptcy Code. Chapter 11 bankruptcy allows a business to reorganize itself and pay creditors back over time.
The chain has about 250 restaurants in 26 states including in the MidSouth.
At the end of 2015, LRI Holdings Inc., the parent company of Logan’s Roadhouse, Inc., announced revenue fell 9.9 percent to $131.3 million in three months ending Oct. 28, 2015, compared with $145.7 million during the same period the previous year.
Same-store sales fell 4.3 percent in the period and customer traffic fell 7.4 percent. Logan’s reported it had $12.9 million in cash and $525.4 million in liabilities as of Oct. 28, 2015.
The bankruptcy filings are part of a consensual plan between the company’s owners, first lien lenders and bondholders, according to the company’s statement.