Sizzler USA filed for chapter Monday, the newest informal eating chain to fall sufferer to the consequences of the Covid-19 pandemic.
One of many earliest reasonably priced steakhouses, Sizzler USA was a cultural staple for many years. It skilled its heyday within the late 1970s and early ’80s however its chain of largely franchised operations shrank lately.
The corporate stated its franchised places, numbering greater than 90, aren’t affected by the chapter submitting. Sizzler added it plans to maintain the 14 company-owned places working throughout the chapter course of, which is aimed toward renegotiating leases.
Sizzler President Chris Perkins blamed the chapter submitting on momentary restaurant closures as a result of pandemic and landlords’ unwillingness to abate rents regardless of the corporate’s monetary misery.
Based in 1958, the Mission Viejo, Calif., firm primarily has places within the western U.S. It later expanded to incorporate seafood and salad bars, chasing newer rivals like Bonanza and Ponderosa steakhouses.
Eating places have been exhausting hit by the coronavirus pandemic, and people with features such as salad bars have been a specific problem for eating chains, which have struggled to draw enterprise below Covid-19 restrictions.
In papers filed within the U.S. Chapter Courtroom for the Northern District of California, Sizzlers estimated each its property and money owed at lower than $10 million.
Monday’s chapter submitting was the second for Sizzler, which sought chapter 11 protection in 1996.
Sizzler USA took its present form in a 2011 administration buyout that acquired the U.S. operations from Australian private-equity firm Pacific Fairness Companions. On the time, the corporate had 178 places within the U.S.
The chapter authorization papers had been signed by Kevin Perkins, who was a part of the administration buyout.
Sheppard, Mullin, Richter & Hampton LLP is advising Sizzler. The chapter case quantity is 20-30748.