The company that owns Romano’s Macaroni Grill recently decided to file for bankruptcy protection. The decision was made because the restaurant is financially struggling as fewer people seek to eat at sit-down restaurants. Like Romano’s Macaroni Grill, companies in Massachusetts who are having trouble making financial ends meet may be able to take advantage of Chapter 11 bankruptcy.
Romano’s Macaroni Grill has seen fewer customers because more of them are eating at faster and cheaper chains. In addition, younger customers generally prefer to eat meals at restaurants that are not chains. In fact, Ruby Tuesday, another sit-down chain restaurant, agreed to selling the restaurant for a whopping $146 million and made private since altering the restaurants and menu was not enough for it to increase its sales.
As part of the bankruptcy filing, the 93 Romano’s Macaroni Grill restaurants will stay open. However, since the start of 2017, the company has shut down about 40 locations that were not profitable. The company, which is based in Denver, currently has around 4,600 workers.
With Chapter 11 bankruptcy protection, a company that is falling behind financially has the opportunity to reorganize its debts and thus make them more manageable. As a result, companies can often stay in business long term even after filing for bankruptcy. However, the bankruptcy filing process is multifaceted and therefore can be complicated. Fortunately, a bankruptcy attorney in Massachusetts can walk a business owner through this process so that he or she can get on the road to financial health in today’s competitive business world.
Source: nbc4i.com, “Romano’s Macaroni Grill files for Chapter 11 bankruptcy protection,” Oct. 19, 2017