Fast-food and casual restaurant chains, facing unsustainable debt obligations, have needed to file for Chapter 11 bankruptcy protection in the last year to reorganize their businesses.
In some cases, restaurant chains will restructure their prepetition debts to enable them to continue operating. In other cases, a company’s debt obligations are so unmanageable that it may opt to sell its assets to its lenders, who will offer a credit bid of the debt they are owed.
Key Points
- Several casual and fast-food restaurant chains filed for bankruptcy due to unsustainable debts.
- On
The Border and Pinstripes sold their assets to lenders in bankruptcy,
but Uncle Julio’s handed its assets to lenders in a foreclosure sale
outside bankruptcy.
- A major restaurant franchisor defaulted on $1.3 billion in debt and may file for Chapter 11 bankruptcy.
...more
RSK: Man, it`s a tough world out there for restaurant hospitality. Some of the assets will probably the locations and real estate.
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- - Volume: 25 - WEEK: 49 Date: 12/2/2025 3:08:44 PM -