Romano’s macaroni grill filed Wednesday for chapter eleven bankruptcy protection. Although the Denver-primarily based agency emphasized the circulate is meant to try and get out from beneath rentals on 37 closed restaurants in place of to downsize the reorganizing sit down-down Italian eatery chain any further.
The 29-year-antique eating place, which has 3 phoenix-region places, already has secured third-party loan funding and does not plan to renegotiate contracts with vendors aside from the lease holders at the closed eating place homes. Raman’s moved its headquarters from Houston to lower downtown Denver last yr following the 2015 buy of the business enterprise with the aid of a set that included Colorado Rockies majority owner dick Monforte.
Submitting for bankruptcy eleven changed into viewed because the “more prudent direction of movement” after negotiations with a number of the lease holders broke down, the business enterprise said in an assertion.
Nishant Machado, who took over as CEO of the chain in may additionally, stated the flow is a part of an ongoing revamp plan for the eating place that has shed unprofitable places, refocused on customer service and all started to move ahead on rebuilding the logo in its current places, which outperformed the general eating place enterprise in September after years of declining revenues.
“our attention is on our visitors and our crew thru this manner,” Machado stated in an interview. “our strategy and our intention is to build a sustainable platform and to prepare macaroni grill for boom.”
The chain has surpassed through a chain of proprietors during the last nine years, shifting from restaurant operator Brinker worldwide to non-public fairness company golden gate capital to ignite eating place organization and sooner or later to pink rock companions LLC. The income rate to crimson rock turned into simply $8 million, no matter the fact that ignite had purchased the chain two years earlier than for $55 million.
Considering that red rock purchased the organization in march 2015, the variety of Romano’s macaroni grill places has fallen from 146 to ninety-three.
In might also of this year, Riesen investment bought Monforte family partnership limited 1’s 50 percent interest in red rock. And taken in country wide restructuring and turnaround firm Mackinac companions to start procedure of developing the chain once more. Machado, who’s with Mackinac, said that once final money-losing locations, the chain has brought in personnel. Along with new eating place managers and new staffers at its 60-man or woman headquarters office on Blake road, to transport the logo forward.
However, the leases that had been signed by using previous proprietors remain a sizable financial burden on macaroni grill, and the business enterprise needs to discover a way to shed what it calls those “legacy liabilities and duties.” the U.S. Financial disaster courtroom within the district of Delaware has legal the chain to continue all client programs and hold all ordinary reimbursement and advantages. Which means it will perform in “enterprise-as-standard mode” all through the financial disaster proceedings, consistent with a query-and-solution sheet launched by way of employer officers.
Machado said the chain will re-attention on what originally attracted visitors to the emblem. As well as constructing out its online ordering platform, catering presenting and its happy-hour revel in.
“our intention is to maintain to recognition on visitor enjoy and to focus on riding our subculture of hospitality,” he stated. “we owe that to our visitors who love this emblem.”