Max & Erma’s Files For Chapter 11
Published: October 26, 2009
Updated: October 26, 2009
PITTSBURGH—Max & Erma’s Inc. has filed for Chapter 11 bankruptcy protection in Pittsburgh listing between $1 million and $10 million in debts.
The Columbus, Ohio-based hamburger and casual dining chain has 79 company-owned restaurants and 27 owned by franchisees, all of which remain open. Most are in Pennsylvania, Ohio and Michigan, though the chain has a few locations in Kentucky and in Chicago, Atlanta and Washington, D.C.
Pittsburgh-based G&R Acquisitions bought out Max & Erma’s for $10.2 million in April 2008.
Documents filed Friday in U.S. Bankruptcy Court in Pittsburgh say Max & Erma’s has between 200 and 999 creditors.
Typically, companies file for Chapter 11 protection so they can reorganize or restructure debt. Robert Lampl, the chain’s attorney, says Max & Erma’s filed primarily because of money it owes to National City Bank.
Company spokesperson Tracy Coats said the company will probably either close some of the restaurants if they cannot restructure rent.
Coats said the restaurants in Columbus will stay open.
“We’re at that point where we filed this reorganization to restructure and renew and reinvigorate this chain, because it is a good chain and there are 8,000 jobs and these are 8,000 entry jobs that for me are the backbone of America.“
Mark Glasper, the head of the Ohio Restaurant Association said all eateries are not enjoying a feast in this ailing economy and salaries are being cut as much as celery. “People are losing their jobs, they’re seeing their salaries slashed and so there just isn’t the disposable incomes to go around to dine out.“
For additional information, stay with nbc4i.com and NBC 4 and refresh nbc4i.com—Where Accuracy Matters.
No comments:
Post a Comment