Bennigans, Steak and Ale company-owned locations shut down

[Manedwolf]

About half of them. Franchise-owned ones remain open. They'd been around a long time!

How many restaurant employees would that be laid off by 150 locations suddenly shutting their doors?

Bennigan's files for bankruptcy protection
7/29/2008, 3:55 p.m. EDT
By LAUREN SHEPHERD
The Associated Press       

NEW YORK (AP)  Restaurant chains Bennigan's and Steak & Ale have filed for Chapter 7 bankruptcy protection and stores owned by its parent company will shut their doors.

The companies owned by privately held Metromedia Restaurant Group of Plano, Texas, filed for bankruptcy protection on Tuesday in the Eastern District of Texas, less than two months after Metromedia said it was not preparing to do so.

In a Chapter 7 bankruptcy filing, a company seeks to liquidate its assets and shut down.

Locations owned by franchisees were not part of the bankruptcy filing and will not be shut down, said Larry Briski, president of the Bennigan's Franchise Operator Association.

"They will be open today, tomorrow and months and years to come," Briski said of the franchise locations.

He said there are about 160 domestic and international franchise locations and about 150 company-owned Bennigan's restaurants.

Meanwhile, employees at what appeared to be a company-owned Bennigan's in Plano, Texas, were greeted by a sign Tuesday on the front door reading "WE ARE CLOSED. THANK YOU." Next door, a Steak & Ale sat empty in a deserted parking lot but there was no sign posted.

A waiter named Steve, who wouldn't give his last name, said the staff got a phone call Tuesday morning telling them the restaurant was closing.

Neither Bennigan's nor the Metromedia Restaurant Group returned calls for comment. A lawyer listed in the filing, J. Michael Sutherland of Carrington, Coleman, Sloman & Blumenthal LLP, did not return a call.

According to a recorded message on the law firm's answering system, not all stores using the Bennigan's and Steak & Ale trade names have filed for bankruptcy and some franchise locations were not included in the filing.

http://www.mlive.com/newsflash/business/index.ssf?/base/business-84/1217350149147300.xml&storylist=business

[Fly320s]

No loss.  Bennigans is terrible.

-posted via I-phone.

[mtnbkr]

Didn't know any were still open.  They left this area ages ago.

Chris

[thebaldguy]

I read earlier that employees will get not get final paychecks. I'm guessing the top corporate dogs will get their last paycheck.

[280plus]

Yea, our Bennigans closed months ago. Just another franchise run by HS and college kids who don't really give a hoot, no loss here. The service was pretty well horrendous while it was open, that's for sure.

[BridgeRunner]

Bennigans did well and truly suck.  Not too sorry to see it go.  Too bad about the employees' final checks though 

I wonder if they will be able to collect back unemployment to the date of their last check?

[HankB]

Echo that Bennigan's was terrible . . . got a gift card in a prize drawing, and found that both service AND food quality were lacking.

[Gewehr98]

Damn.  I lurve me some Monte Cristo sammiches.   

[Azrael256]

I read earlier that employees will get not get final paychecks.

Oh, that will not play well.  Not paying employees for time worked is a big, big mistake here.  TWC will get paychecks out of the sold assets.

[seeker_two]

I've liked the Bennigan's that I've been to  (Tyler, College Station, Round Rock). I hate to see it go......

Guess I'll be frequenting Fox & Hound more....

I read earlier that employees will get not get final paychecks. I'm guessing the top corporate dogs will get their last paycheck.

I smell class-action..... 

[thebaldguy]

I read earlier that employees will get not get final paychecks.

Oh, that will not play well.  Not paying employees for time worked is a big, big mistake here.  TWC will get paychecks out of the sold assets.

I've had some friends of mine that worked for a local bar/restaurant when they went under. They went to work one morning, found a note on the door, and the place closed up. They never got paid. The company that owned the place declared bankruptcy, and the employees got stiffed with the food distributors, liquor distributors, beer distributors, advertisers, etc. You can try taking them to court, but you will probably never collect even if you win. If they're bankrupt, they're bankrupt, and there's really nothing you can do.