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Ryan's parent company, Buffets, Inc., files for Chapter 11 bankruptcy

STAFF REPORTS
Published on Monday, January 23, 2012

Buffets Inc., parent to Ryan's steak-buffet brands, has filed for Chapter 11 bankruptcy protection, closed 81 restaurants and will recapitalize in an agreement with lenders that will convert debt into a controlling equity stake.

Ryan's at 1501 W. Poinsett Hwy. is not effected by the closures and will remain open.

The Eagan, Minn.-based company is also parent to the Old Country Buffet, HomeTown Buffet, Fire Mountain and Tahoe Joe's Famous Steakhouse. The closures represent 16 percent of the company's 494 stores in 38 states.

Buffets reported it's seeking more favorable lease arrangements at other locations and if leases cannot be modified, more closings may be necessary.

Buffets Inc. reported a net loss of $34.9 in the second quarter ending Dec. 13, 2011 vs. a loss of $3.9 million in the same quarter a year earlier.

The move marks the second bankruptcy filing for Buffets Inc. in the past four years. It filed for Chapter 11 in 2008 with falling sales and debt burden from its $876 million acquisition of the Ryan’s brand in 2006. Buffets Inc. emerged from that bankruptcy in April 2009.

Businesses mentioned in this article.

Ovation Brands

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