Latest news with #Chapter7
Miami Herald
a day ago
- Business
- Miami Herald
Popular bar and grill chain files for Chapter 11 bankruptcy
Restaurant chains have navigated economic challenges since the Covid-19 pandemic, as many were forced to close down during the pandemic. Once restaurants reopened, they needed to adopt health safety protocols meant to prevent the spread of Covid-19. Don't miss the move: Subscribe to TheStreet's free daily newsletter Casual restaurants adjusted to the protocols and offered take-out and curbside pick-up for customers until the pandemic subsided and they could offer sit-down dining again. Related: Popular restaurant chain franchisee files Chapter 11 bankruptcy But new financial issues arose, such as rising labor and food costs driven by inflation and increased interest rates on debt obligations. Financial distress caused by lingering effects of the pandemic, inflation, and rising interest rates led several popular dining chains to file for bankruptcy in the past year. Red Lobster filed for bankruptcy in May 2024, closed about 187 restaurants, and emerged from Chapter 11 in September 2024 with about 478 locations in 44 states. TGI Fridays filed for Chapter 11 bankruptcy on Nov. 2, 2024, to reorganize its business, closed 76 locations, and had 85 U.S. locations on its website in April. Mexican restaurant chain On The Border Mexican Grill & Cantina had about 120 locations at the beginning of this year and closed or vacated 40 non-performing stores on Feb. 24, 2025, because of problems with rent and/or financial performance. On The Border filed for Chapter 11 bankruptcy on March 4, 2025, with plans to sell its assets to its prepetition bridge loan lender. CHG US Holdings, which operates 18 Planta restaurant locations across the country in cities such as New York, Chicago, and the Los Angeles area, filed its petition on May 12, 2025, in the U.S. Bankruptcy Court for the District of Delaware. The debtor closed restaurants in West Palm Beach, Fla.; South Beach, Fla.; and Brooklyn, N.Y., since filing for bankruptcy. And now, the parent company of bar and grill restaurant chain S2 Grills has filed for Chapter 11 bankruptcy protection to restructure its debt. Related: Popular smoothie chain franchisee files for Chapter 11 bankruptcy Debtor AWS Hospitality Group Inc. filed its Subchapter V petition on June 19 in the U.S. Bankruptcy Court for the Northern District of Illinois, listing $50,000 to $100,000 in assets and $1 million to $10 million in liabilities. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The Mokena, Ill.-based debtor's major creditors include Morgan Services Inc., owed over $88,000; Craig Shaffer & Associates, owed over $36,000; Bank of America, owed over $34,000; and Sysco, owed over $12,000. The debtor did not state a reason for filing for bankruptcy in its petition. The S2 Grills chain consists of nine locations in Illinois, including two casual S2 Bar and Grills in Chicago and one in Maywood, Ill., three S2 Express Grills in Chicago, and one each in Orland Park, Harvey, and Richton Park, Ill., according to its website. The chain was founded in 2019 by Andre and Suheir Williams after receiving positive feedback on social media for menu items at their S2 Ultra Bar in Calumet Park, Ill., when they were relocating the bar. The restaurant chain serves breakfast, featuring such choices as Ribeye Steak Big Breakfast with eggs, steak, rice or grits, potatoes, two pancakes or toast, and the S2 Big Breakfast with eggs, sausage or bacon, grits or rice, potatoes, two pancakes or toast. The restaurant also offers Mexican food, such as tacos, burritos, and nachos; chicken and waffles, wings, and tenders; and dinners featuring ribeye steak, lamb chops, ribs, pot roast, lobster tail, king crab legs, salmon, and shrimp. Related: Popular brewery files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
3 days ago
- Business
- Miami Herald
Formerly bankrupt retail chain closing more stores 5 years later
U.S. shoppers might be losing yet another retail chain, with its last few stores at risk of disappearing five years after a tumultuous bankruptcy filing. Imagine waking up one morning and heading to your favorite store. However, instead of finding an establishment full of clothes and the sound of elevator music, you see an empty unit with nothing but signs that read "store closing." Don't miss the move: Subscribe to TheStreet's free daily newsletter The U.S. is losing retail chains faster than ever, with beloved retail giants like Macy's (M) , JCPenney (JCP) , and Kohl's (KSS) closing stores as if it were a competitive race, slowly leaving consumers fewer options to fulfill their shopping needs. Related: Huge home retailer closing 26 stores amid Chapter 11 bankruptcy Founded in 1973, Roots is a Canadian outdoor apparel brand known for its athletic wear, leather goods, and accessories. The retail chain has around 100 physical stores in Canada, two in the U.S., and over 100 partner-operated locations in Asia. It also has an e-commerce platform that delivers to more than 70 countries worldwide. Image Source: Shutterstock Roots (RROTF) filed for Chapter 7 bankruptcy in the U.S. in 2020 due to financial challenges resulting from the Covid pandemic. At the time, it had around $9.6 million in assets and $15.4 million in liabilities. Related: Bankrupt retail chain makes major comeback, reopens new stores This caused the retailer to liquidate and shut down nearly all its U.S. stores, leaving only two physical locations running nationwide. Because the company still saw potential in the country, it maintained its e-commerce platform to continue U.S. distribution but made no effort to expand its physical locations. In its latest earnings call, Roots revealed it has enacted a multi-year strategy over the past year focused on in-store customer engagement, digital merchandising, inventory availability, and omnichannel capabilities to boost sales and get its business back on track. As part of this plan, the retailer has closed underperforming stores to invest in "locations that support long-term profitability and customer engagement." Roots says these efforts have already delivered positive results during the first quarter of fiscal 2025, with sales increasing nearly 7% year-over-year. However, it still reported a net loss of almost $8 million (Canadian) in the quarter. More Retail News: Huge HomeGoods rival files Chapter 11 bankruptcy, closes storesPopular Mexican restaurant adds new menu, new store conceptWalmart makes deal to open popular food chain in stores These closures allow the retailer to invest in updating its exciting locations to provide a better overall customer experience. Although Roots has yet to disclose which specific locations will be on the chopping block next, the U.S. sector is not immune to suffering the same fate. If it deems them underperforming, the company could close its remaining two physical U.S. locations, as it plans to continue investing in other areas by cutting costs. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
3 days ago
- Business
- Miami Herald
Popular restaurant chain franchisee files Chapter 11 bankruptcy
The Covid pandemic forced many restaurants to adjust to a new normal based on health safety protocols meant to prevent the spread of the potentially deadly disease. In March 2020, restaurants across the nation closed their doors but soon reopened with social distancing and safety protocols. Don't miss the move: Subscribe to TheStreet's free daily newsletter Fast-food restaurants were designed with take-out and drive-thru systems that allowed them to continue operating as if nothing happened, though many shut their dining rooms for many months for safety reasons. Related: Major nationwide trucking company files for Chapter 11 bankruptcy Casual restaurants did their best to offer take-out and curbside pick-up systems, but some restaurant concepts, such as buffets, were not designed for such systems, did not adopt them, and many went out of business. Some of the most significant restaurants to suffer the effects of the pandemic filed for bankruptcy over the last year. Seafood chain Red Lobster, which filed for bankruptcy in May 2024, closed about 187 restaurants. The dining chain emerged from Chapter 11 in September 2024 and now operates about 478 locations in 44 states. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy Bar and grill chain TGI Fridays had 161 U.S. locations when it filed for Chapter 11 bankruptcy on Nov. 2, 2024, to reorganize and closed 76 locations. The restaurant chain listed 85 U.S. locations on its website in April. Italian restaurant chain Buca di Beppo closed 18 locations last year before it filed for Chapter 11 bankruptcy protection on Aug. 4, 2024, to reorganize its business with the support of its lenders. The restaurant chain on Nov. 4 won approval to sell its 44 remaining corporate-owned restaurants to its lender Main Street Capital Corp., with a credit bid of $27 million. But it was buffet restaurants that were hit the hardest by the pandemic, with several filing for bankruptcy months after the beginning of the pandemic. National buffet chain Hometown Buffet's parent Fresh Acquisitions LLC filed for Chapter 11 in April 2021, suffering from the effects of the Covid pandemic and closed down permanently. The chain had struggled for years as the previous owner, Buffets Inc., filed for bankruptcy in 2008 and 2012 before selling the company in 2015, just before the chain's new owners filed Chapter 11 again in 2016. Other buffet restaurants also felt the harsh effects of the Covid pandemic and were forced to file for bankruptcy. Golden Corral franchisees were among the buffet restaurant owners to file for bankruptcy as the pandemic subsided. The buffet restaurant chain's largest franchisee at the time, 1069 Restaurant Group LLC, filed for Chapter 11 bankruptcy in October 2020, and its second-largest franchisee, Platinum Corral LLC, filed for bankruptcy in April now fast-forward to 2025, and another franchisee of Golden Corral has filed for Chapter 11 bankruptcy to reorganize its business. South Texas Corral LLC filed its Subchapter V petition on June 17 in the U.S. Bankruptcy Court for the Southern District of Texas, listing $150,000 in assets and $1.64 million in liabilities. Related: Popular smoothie chain franchisee files for Chapter 11 bankruptcy The Brownsville, Texas, Golden Corral franchisee did not reveal a reason for filing for bankruptcy in its petition. Golden Corral, which launched in Fayetteville, N.C., in 1973, operates about 351 restaurants in 39 states and Puerto Rico, with most of them run by franchisees. The restaurant chain claims to be the nation's largest grill buffet restaurant chain. It serves all-you-can-eat breakfast, lunch, and dinner, featuring various grilled steaks, ribs, barbecue beef, brisket pot roast, meatloaf, burgers, sandwiches, chicken and wings, soups and salads, and various breakfast items. Related: Popular local Dairy Queen rival files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
4 days ago
- Business
- Miami Herald
Major national trucking company declares Chapter 11 bankruptcy
The Great Freight Recession continues to force trucking and logistics companies into financial distress, requiring many to file for Chapter 11 bankruptcy and sometimes close down their business. Whether it's a large trucking company that ships truckloads to all 48 contiguous states or a small shipping company with a handful of trucks and drivers, the size of the company doesn't matter. Companies of all sizes are declaring bankruptcy, reorganizing, and shutting down. Don't miss the move: Subscribe to TheStreet's free daily newsletter In some cases, companies shut down without filing for bankruptcy. For example, Madison, Ill.-based LTI Trucking, with about 250 drivers, 300 tractors, and 575 trailers, shut down its operations on April 2, but did not file for bankruptcy protection. Related: Major trucking company files Chapter 11 bankruptcy The company, which did not state a reason for closing, was a major shipper of products for AB InBev, KraftHeinz, Vlasic, Hershey's, Nestle, Tyson, Hillshire Farm, Kroger, Hostess, and Sara Lee. Florida-based regional trucking company Davis Express Inc., which had 160 trucks and 140 drivers, shut down its business permanently in April after making its final deliveries on April 23 and returning all trucks to its terminal by April 30. Davis Express also did not file for bankruptcy. The company's owner, however, said the company, which operated in Florida, Alabama, Georgia, and South Carolina, had been unprofitable since 2023, and he did not expect to see improvement in 2025. All employees were paid and received benefits through their June 15 pay period, the company said. On the other side of the trucking spectrum, Bloomingdale, Ill.-based Integral Express, with three trucks and three drivers, filed for Chapter 11 bankruptcy protection on June 15 in the U.S. Bankruptcy Court for the Northern District of Illinois. The debtor listed $500,000 to $1 million in assets and $1 million to $10 million in liabilities, including $200,000 owed to M&K Financial, $150,000 owed to CIT Bank, $98,000 owed to Chase Card Services, and over $87,000 owed to De Lage Landen Financial. The debtor indicated in its petition that funds would be available for distribution to unsecured creditors. Finally, major nationwide trucking and logistics company Dolche Truckload Corp. filed for Chapter 11 protection on June 15 to reorganize its business and restructure its debts. Related: Another major trucking company files for Chapter 11 bankruptcy The Palatine, Ill., women-owned and founded trucking company listed $1 million to $10 million in assets and liabilities in its Subchapter V petition filed in the U.S. Bankruptcy Court for the Northern District of Illinois, including $495,000 owed to the Small Business Administration, as well as creditor claims from M&T Bank, Daimler Truck Financial and Headway Capital. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The debtor also listed claims from credit card companies, including Capital One, American Express, and Chase. The company did not state a reason for filing for bankruptcy in its petition. Dolche Truckload, founded and owned by Desi Evans since 2010, operates 70 trucks for interstate shipping to 48 contiguous states, according to its website. The trucking company carries general freight, fresh produce, meat, refrigerated food, beverages, paper products, liquids and gases, and chemicals, according to the Federal Motor Carrier Safety Administration SAFER website. Dolche Truckload offers shipping on flatbeds, full truckload, and less-than-truckload services. Related: Major logistics and trucking company files Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
5 days ago
- Business
- Miami Herald
Bankrupt iconic retail chain closes 125 more stores
Major drugstore chains have struggled to remain profitable as several economic issues have put pressure on revenues. Many of the financial problems are tied to economic challenges they have faced since the Covid pandemic, including rising costs of labor and products, driven by inflation and increased interest rates on debt obligations. Don't miss the move: Subscribe to TheStreet's free daily newsletter Competition among the top pharmacy chains, including Walgreens, CVS, and Rite Aid, has grown significantly as big-box retail chains like Walmart, Target, and Costco expanded their pharmaceutical services, and internet drug providers like Amazon and Mark Cuban's CostPlus Drug Company added their services as patient options. Related: Bankrupt retail chain closing over 200 more stores Both Walgreens and CVS embarked on store-closing programs over the last four years to eliminate locations that do not make economic sense. Walgreens, which operated about 8,600 stores with 6,000 profitable locations in 2024, evaluated 2,000 stores for potential closure and identified 1,200 locations to shutter, with 500 set to close in fiscal year 2025. Drugstore chain CVS in 2021 revealed it would close 900 of its nearly 9,900 stores to reduce costs and cut losses, closing 300 locations each year in 2022, 2023, and 2024. The company expanded the store closing campaign in 2025, revealing in its annual report in February that it would close 271 more stores this year. Rite Aid's store closing plans were much more extreme as it filed for bankruptcy twice over the last two years, with plans to ultimately close all of its stores. When Rite Aid filed for Chapter 11 bankruptcy for the first time on Oct. 15, 2023, it closed about 800 of its 2,100 stores as part of a reorganization plan. The drugstore chain filed for Chapter 11 protection a second time on May 5, 2025, as New Rite Aid LLC, and has begun a process of closing hundreds of its remaining stores. Rite Aid filed its seventh notice of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey on June 13, seeking approval to close 125 additional stores and liquidate their assets, adding to previously designated locations for closing, for a total of 829 of its stores. Related: Bankrupt retail chain closing dozens more store locations Rite Aid already filed notices of store closing locations with the original notice and an additional closing notice on May 9, a second additional closing notice on May 15, a third additional closing notice on May 23, a fourth additional notice on May 30, and on June 6 filed fifth and sixth notices of additional store closing locations. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The first seven groups of store closings listed 704 locations in 13 states, including Pennsylvania (214), California (181), New York (97), Washington (48), Oregon (32), New Jersey (31), New Hampshire (26), Virginia (24), Delaware (21), Maryland (13), Connecticut (6), Idaho (5), Massachusetts (3), Vermont (2), and Ohio (1). The debtor's seventh additional closing notice, includes 125 store closures in California (56), New York (24), Pennsylvania (19), New Hampshire (11), New Jersey (4), Washington (4), Delaware (2), Maryland (2), Connecticut (1), Ohio (1), and Virginia (1). Rite Aid will file several additional store closing notices before its bankruptcy case closes, since it plans to close all of its stores, estimated at about 1,240. Judge Michael B. Kaplan signed an interim order on May 9 approving initial and additional location closings. Objections to the interim location closing order and any of the proposed store closings must be filed with the court and received by the debtor and their counsel no later than June 23, according to court papers. Related: Bankrupt drugstore chain closing over 150 stores; here's where The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
