Restaurant chain files for Chapter 11 bankruptcy

A restaurant chain in another state recently determined that it needed to take drastic steps to address its lackluster financial situation. It thus decided to file for Chapter 11 bankruptcy protection. Restaurants and other types of businesses in Massachusetts that are struggling to overcome their debt situations can do the same to get back on the path to financial health.

In the recent out-of-state case, the restaurant chain that filed for bankruptcy ended up closing seven of its restaurants. As of November of 2017, the restaurant chain operated a total of 19 locations. In addition, the chain, which sells fast-casual food, hired an investment banking firm to give it advice on various strategic alternatives, such as possibly selling the business and/or its assets.

The restaurant chain, founded in 2011, pioneered the concept of serving fast-casual Mediterranean food — a concept that has since grown in popularity throughout the United States, thus leading to a crowded field. In 2015, the chain won private funds totaling $20 million, which fueled its national expansion and name change at that time. Last year, the business generated $10 million more for rebranding and changed its name yet another time. However, none of this was apparently enough to keep the chain from experiencing financial problems.

Sometimes, market and industry conditions keep companies in Massachusetts and elsewhere from being able to thrive financially. Fortunately, business owners who face overwhelming amounts of debt have the option of filing for Chapter 11 bankruptcy protection to break free from their debt. An attorney can provide struggling business owners with the guidance they need to complete their bankruptcy filings with confidence in The Bay State.