Saturday, October 21, 2017
Romano's Macaroni Grill chain on brink of collapse
The company this week filed for Chapter 11 bankruptcy protection amid store closures and a restructuring of the Denver-based chain's operations. It recently closed 37 locations, prompting lawsuits by some of the company’s landlords.
According to a filing with the U.S. Bankruptcy Court for the District of Delaware, many of the company’s landlords are “seeking to recover damages far in excess of anything they would be entitled to under bankruptcy." Macaroni Grill has 93 company-owned locations and franchises another 23 units.
RedRock Partners LLC of Arizona owns Macaroni Grill, which it acquired from Ignite Restaurant Group Inc. in 2015 for $8 million. In its filing, Macaroni Grill cited a decrease in sales and an increase in labor and commodity costs, which hurt profits.
Staff William M. Dowd at 10:49 PM