The restaurant chain Sizzler, known for its moderately priced steaks and expansive salad bar, filed for Chapter 11 bankruptcy Monday, blaming falling sales on the COVID-19 pandemic.
According to the publication Restaurant Business, the chain — which operates 107 locations, including Palmdale — reported between $1 million and $10 million in liabilities and the same amount in assets.
The company stated it anticipates emerging from the Chapter 11 bankruptcy process within 120 days.
“The filing is a direct result of the financial impact the COVID-19 pandemic has had on the casual dining sector, particularly long-term indoor dining closures and landlords’ refusal to provide necessary rent abatement,” Chris Perkins, the president and chief services officer of Sizzler USA, said in a prepared statement.
The chain plans to keep all of its locations open for business throughout the process of renegotiating leases, and franchisees will not be affected during the Chapter 11 process, according to the company.
“Today’s filing represents a new chapter for Sizzler, and it’s an option we’ve undertaken based on the underlying strength of our 62-year-old legacy brand,” Perkins said. “Many restaurant brands across the country have suffered because of COVID-19 and Sizzler USA is no exception.”
According to the company, the filing will allow Sizzler “to do everything we can to support our employees and franchisees” and “build a stronger future.”
According to Eater Los Angeles, sales at Sizzler were already declining before the pandemic, and it remains unclear how many locations will return, if any, following the bankruptcy filing.
The company owns 14 restaurant locations outright, while the remaining 93 are franchises, and it will be looking to renegotiate lease terms with landlords at those locations, at least, Eater reported.
7 comments for "Sizzler restaurant chain files for bankruptcy"
Marty Mills says
The Phony/fireman Mayor of Palmdale doesn’t seem to have a grip on the local economy beyond street repair projects. People are losing everything while he is pretending all is great.
Union Made says
I would have to say the Republican majority on the Palmdale City Council has FAILED to bring any vision to lead or city. That includes the phony/fireman. So little vision for Palmdale means our city is not maximizing our opportunity to improve.
Phony fireman is MIA or AWOL says
The phony fireman/now mayor, came into office when Trump’s big tax cut for the 1% created a boom in the stock market and gave the economy a quick sugar fix but no long term benefit as we saw how quicly upscale places filed for bankruptcy.
Anyway, the phony thought it would be blue skies and green lights forever as Republicans do when they get a tax cut*. The phony fireman was ill-prepared to handle anything difficult such as a pandemic and/or recession.
The phone fireman is hiding somewhere. He needs to be replaced so Palmdale doesn’t go down the tubes.
Former Mayor Jim Ledford led the city through several recessions and other difficult problems for 26 years. This phony is like Trump. They both landed on 3rd base, economy-wise, and they thought they hit triples all on their own.
*Reagan>big tax cut>Black Monday in 1987
Bush the Lessor>tax cut>crash/recession in 2008=9
Trump>tax cut for the 1%>poorly handled pandemic>stock market
crash/recession/unemployment through the roof.
Republicans. Big fails every time
The mayor is not responsible for managing the finances of a restaurant chain. The economic impacts from Gavin’s illegal shutdowns combined with poor financial planning is more likely the cause of this mediocre restaurant chain filing for CH11.
Union Made says
Gus your softball support for a inept and phony/fireman playing like he is in charge does not support your theory that this is out of his or the city council’s control is laughable as without vision we are destined to fail without contact to the injured. Our elected reps are failing to lead and that is very true for a person that needs to present himself as something he has never been a fireman!! Accountability is a measure of qualification to those that want to lead. The Mayor is a fraud!!!
Oh, Gus, you poor thing if you’re not actually Hof himself and blaming the governor.
Mayor Ledford led Palmdale through several severe recessions and fought off influence from Rex Parris and Palmdale grew and flourished nonetheless.
Hofbauer has been hiding somewhere waiting for it to all be over.
He needs to be replaced in November. He can’t do anything to help Palmdale. He’s not cutout for the job.
Let him sit on committees and boards and twirl his moustache but not be mayor.
Seen this already says
The phony Fireman needs to be replaced with new blood and enthusiasm. Send him out of town for committee work like before.