Sizzler restaurants file for bankruptcy, citing COVID-19 – KIRO 7 News Seattle
Sizzler filed for Chapter 11 bankruptcy on Monday, citing forced restaurant closings and financial hardship as a direct result of the novel coronavirus pandemic.
The 62-year-old California-based steakhouse chain said in a statement that the voluntary step will allow the company to reduce debt and renegotiate leases with landlords, USA today reported.
“Our current financial situation is a direct result of the economic impact of the pandemic due to long-term indoor restaurant closures and landlords’ refusal to provide necessary rent reductions,” said Chris Perkins, President and Director of Sizzler Services.
According to fox businessThe steakhouse has tried to refocus its efforts on takeout, delivery and outdoor dining, but none of those alternatives capitalize on the chain’s signature salad bar, which accounts for more than 40% of its revenue. restaurants.
“These unprecedented times and the resulting economic damage to the American restaurant and hospitality industry have not spared” Sizzler despite his efforts to cut costs and maximize sales, Perkins said in documents. judicial.
Founded in 1958 as Del’s Sizzler Family Steak House, the chain currently operates 107 locations and employs 485 people in 10 states, USA Today reported.
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