Finances and Deals
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Justin Sullivan via Getty Images
Red Lobster expects positive net income by fiscal 2026
The chain also anticipates adjusted EBITDA growth of 43% from fiscal 2025 to 2027 after emerging from Chapter 11.
By Julie Littman • July 25, 2024 -
Courtesy of Pizza Hut
Pizza Hut franchisee declares bankruptcy
EYM Group has been in a legal battle with Pizza Hut over the past few months and closed over a dozen stores in Indiana and Ohio in June.
By Julie Littman • July 23, 2024 -
Brandon Bell via Getty Images
Red Lobster to be acquired by stalking horse bidder
After it failed to receive any qualified bids, the casual chain will continue the sales process with RL Purchaser, an entity organized and controlled by secured lender Fortress Credit Corp.
By Julie Littman • July 23, 2024 -
Permission granted by One Table Restaurant Group
One Table Restaurant Brands files for Chapter 11 bankruptcy protections
Fees on third-party orders and rising debt costs meant a partial recovery from 2020 was not enough to allow the parent company of Tender Greens and Tacaya to repay its creditors.
By Aneurin Canham-Clyne • July 18, 2024 -
Brandon Bell via Getty Images
The biggest restaurant bankruptcies so far this year
From Red Lobster to Rubio’s, several chains and franchisees went bankrupt as they faced declining traffic, rising costs and other economic factors.
By Julie Littman • July 15, 2024 -
Permission granted by Fat Brands
Fat Brands hires financial expert to help deleverage balance sheet
In his new role, Jordan Chirico will focus on the company’s $1.2 billion debt that built up following Fat’s acquisition spree that began in 2019.
By Julie Littman • July 2, 2024 -
Permission granted by Arby's
Arby’s franchisee files for Chapter 11 bankruptcy
Miracle Restaurant Group declared its second bankruptcy since 2010, citing financial pressures, rising costs, negative same-store sales and its inability to sell a number of low-performing stores.
By Julie Littman • June 26, 2024 -
Permission granted by Rubio's Coastal Grill
What drove Rubio’s to declare bankruptcy again
Despite completing a restructuring in 2020, the chain struggled to overcome macroeconomic headwinds that led to three years of negative EBITDA.
By Julie Littman • June 12, 2024 -
Brandon Bell via Getty Images
Deep Dive
How a bad real estate deal sunk Red Lobster
Trouble began in 2014 when the chain’s owner sold its real estate in a sale-leaseback, putting the seafood brand on the hook for millions in rent.
By Julie Littman • June 10, 2024 -
Permission granted by Rubio's Coastal Grill
Rubio’s files for bankruptcy protection
The company, which has been under financial pressures due to diminishing traffic and rising costs, said a Chapter 11 filing is part of facilitating a sale.
By Julie Littman • Updated June 5, 2024 -
Courtesy of BurgerFi
BurgerFi seeks strategic alternatives
The company will consider all options as it continues to face liquidity challenges, sales growth problems and net losses.
By Julie Littman • May 31, 2024 -
Justin Sullivan via Getty Images
It’s more than shrimp: What led to Red Lobster’s bankruptcy
A cash shortage, traffic declines and pressure from equity sponsor Thai Union to become its sole shrimp supplier led to high costs — compounding losses induced by the ill-fated Ultimate Endless Shrimp promo.
By Julie Littman • May 21, 2024 -
Justin Sullivan via Getty Images
Red Lobster declares bankruptcy
The chain’s bankruptcy is the culmination of months of financial woes, which included significant losses, trouble paying its bills on time and a planned divestment by its minority owner.
By Julie Littman • May 20, 2024 -
Justin Sullivan via Getty Images
Red Lobster closes 48 locations, auctions off contents
The chain, which has had trouble paying its bills on time, may be considering bankruptcy as its minority owner divests from it.
By Julie Littman • May 14, 2024 -
Permission granted by Fat Brands/Twin Peaks
Fat Brands files for Twin Peaks IPO
Fat plans to use the proceeds of an IPO to deleverage its balance sheet, which includes over $1 billion in debt taken on in a flurry of recent acquisitions.
By Julie Littman • May 14, 2024 -
Permission granted by Fat Brands
Feds indict Andrew Wiederhorn, Fat Brands in $47M loan scheme
Wiederhorn was slapped with a litany of charges including tax evasion, wire fraud and possession of a firearm as a convicted felon.
By Aneurin Canham-Clyne • May 10, 2024 -
Courtesy of Sticky's
Chicken tender chain Sticky’s Finger Joint files for Chapter 11
Low foot traffic in Manhattan, exacerbated by high prices for chicken and potatoes, left 12-unit Sticky’s in a weak position.
By Aneurin Canham-Clyne • April 26, 2024 -
Permission granted by Tijuana Flats
Tijuana Flats files for Chapter 11, gains new owners
The fast casual chain also closed 11 restaurants after undergoing a unit-by-unit analysis of financial performance, occupancy costs and market conditions.
By Julie Littman • April 19, 2024 -
Justin Sullivan via Getty Images
Why Red Lobster could be headed toward bankruptcy
The chain only paid a quarter of its bills on time in February and over half were 61 to 90 days late, according to data from Creditsafe.
By Julie Littman • April 19, 2024 -
Bruce Bennett via Getty Images
4 things to know about TGI Fridays’ acquisition by Hostmore
The chain’s biggest franchisee has been reducing expenses since 2022, which should help the combined company start on stronger financial footing in the U.K.’s public market.
By Julie Littman • April 18, 2024 -
Bruce Bennett via Getty Images
TGI Fridays enters $220M agreement to combine with UK franchisee
The deal with Hostmore, worth over $220 million, will lead to TGI Fridays trading on the London Stock Exchange under “TGIF” symbol.
By Julie Littman • April 16, 2024 -
Halfpoint via Getty Images
Q&AAsk an expert: How can brands protect struggling franchisees from bankruptcy?
A bad franchisee can do “irreparable harm” to its parent chain, but early intervention can help avoid sales shortfalls and covenant defaults, said Chris Desiderio of Nixon Peabody.
By Aneurin Canham-Clyne • April 15, 2024 -
Permission granted by Waitr Holdings
ASAP goes bust
ASAP, once known as Waitr, ceased its operations over the last few weeks and let go of its executives, prior to filing for Chapter 7 bankruptcy on Tuesday.
By Aneurin Canham-Clyne • Updated April 2, 2024 -
Courtesy of Chipotle
Fast casuals outperform QSRs as pricing erodes fast food’s low-income advantage
Chains like Chipotle and Wingstop exceeded analyst expectations for sales and EBITDA last quarter, while QSR giants lagged, per a TD Cowen report.
By Julie Littman • April 1, 2024 -
Courtesy of Five Iron Golf
Danny Meyer’s PE firm invests $20M in Five Iron Golf
Enlightened Hospitality Investments’ minority investment will help the golf-simulator chain accelerate growth and increase its offerings.
By Julie Littman • March 12, 2024
