Bennigan’s restaurants are closing nationwide today after the parent company announced Chapter 7 bankruptcy. S&A Restaurant Corp. announced that it was closing all corporate-owned Bennigan’s locations as well as their Steak & Ale and The Tavern restaurants which they also own.
Bennigan’s has about 300 locations in 32 states across the country. Only about half of these will have to close their doors because the bankruptcy does not affect the 150 or so franchise-owned locations.
All of the employees at Bennigan’s corporate locations will be out of work. In Chapter 7 bankruptcy, a company has to forfeit all of its assets to pay off debtors and the company is forced to close. Metromedia, the company that owns S&A is not out of business and will continue running their Ponderosa and Bonanza restaurant chains.
Sources: Reuters, Dallas News