CULLMAN – We reported last week that Logan’s Roadhouse Inc. was said to be close to filing Chapter 11 bankruptcy. According to a news release from the Nashville-based chain, the company officially filed on Monday, and will be closing 18 underperforming restaurants.
The statement said, in part, "The company will be closing 18 underperforming restaurants as part of the overall efforts to improve the company’s financial performance. A plan is in place to assist employees in closing restaurants, reassigning employees to other Logan’s restaurants and providing them with outplacement services and assistance with applying for jobs."
The company has not disclosed the locations of the affected restaurants, but have said they will do so in the coming days.
Logan's joins fellow restaurant chain Buffets LLC, who filed Chapter 11 in March.
Cullman Economic Development Agency Assistant Director Dale Greer said last week, when the reports of bankruptcy first surfaced, "We have just been made aware of the reports. Logan's has to be in the top five restaurants in sales in Cullman. We don't know yet what it will mean."
According to The Tennessean, In the first half of 2016, the chain’s traffic fell by 8.8 percent and sales fell by 4 percent.
The chain has about 250 restaurants in 50 states with 18,964 employees, including 1,002 full-time workers.
As of the end of October last year, Logan's had $12.9 million in cash and $525.4 million in liabilities.
Assets were estimated at between $100 million and $500 million and the company has as many as 25,000 creditors. Logan's has about $416 million in debts, almost all of which is secured. Real estate investment trust National Retail Properties leads all other creditors and is owed more than $52,000, according to court filings.
Logan’s in Cullman is located at 6092 Alabama Highway 157.
