Logan’s Roadhouse Files For Bankruptcy, Closing Some Stores
Logan's Roadhouse Inc. filed for Chapter 11 Bankruptcy protection on Monday and announced plans to close at least 18 "under-performing" restaurants as part of a plan to restructure the company.
The Nashville-based restaurant chain operates 256 locations and has been struggling with heavy debt and falling sales. According to USA Today, Logan's has about $416 million in debts and reported a $112 million loss last year.
Logan's said their goal is to restructure their balance sheet and fund a turnaround. The company’s owners, lenders, bondholders, board of directors and senior management are funding up to $25 million to support the company through bankruptcy.
“...[We] are committed to ensuring the company’s future growth and success, and today’s filing is simply a necessary step to achieve those goals,” Logan’s said in a statement.
It's unclear how many of Logan's 18,964 employees will be affected by the closure of the 18 restaurants, however, a plan is in place to assist employees in closing restaurants, the company said. Employees of closing locations will have the opportunity to relocate to other Logan’s restaurants or will be provided assistance with applying for jobs.
The list of Logan's restaurants set to close has not been released, so the fate of Logan's Roadhouse in Wichita Falls is yet to be seen. We'll keep you posted.