Sizzler restaurant chain files for bankruptcy, says move ‘direct result’ of coronavirus pandemic


Sizzler, the steakhouse chain known for its grilled meats and giant salad bars, filed for bankruptcy on Monday after the coronavirus pandemic shuttered its restaurants and strained its finances.

“The filing is a direct result of the financial impact the COVID-19 pandemic has had on the casual dining industry, particularly the long-term closures of indoor restaurants and owners’ refusal to provide food. rent reduction needed,” Sizzler said in a statement, according to Restoration Company News.

Sizzler says he has struggled to recover from virus-related lockdowns that have forced all of his 14 company-operated restaurants to close at least twice.

NEARLY 90% OF NYC BARS, RESTAURANTS CANNOT MAKE RENT IN AUGUST, SURVEY SAYS

The chain said it has tried switching to takeout, delivery and outdoor dining, but those alternatives are not working well for its signature salad bar, which is responsible for more than 40% of revenue of its 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, the chairman of the Christopher Perkins Company in a court filing.

“The filing is a direct result of the financial impact the COVID-19 pandemic has had on the casual dining industry, particularly the long-term closures of indoor restaurants and owners’ refusal to provide food. rent reduction needed,” Sizzler said in a statement. (Frederic J. Brown/AFP via Getty Images)

CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS

Founded in 1958 as Del’s Sizzler Family Steak House, the California company has grown into a chain of more than 100 restaurants in the United States, most of which are run by franchisees, according to court records.

Sizzler plans to continue operating its 14 company restaurants during the bankruptcy process, which does not affect its more than 90 franchise restaurants, The Wall Street Journal reported. The chain’s bankruptcy petition lists between $1 million and $10 million in liabilities and a similar amount in assets.

GET FOX BUSINESS ON-THE-GO BY CLICKING HERE

This article originally appeared in the New York Post.

Previous What is the reduction in student loan rates for?
Next Israel and the United Arab Emirates agree 28 direct flights per week to start soon