The long list of restaurant chains filing for bankruptcy amid slower sales added another name today: Romano’s Macaroni Grill.
Romano’s Macaroni Grill owner RedRock Partners announced today that it had filed for Chapter 11 bankruptcy protection as a way to reorganize the company and reduce debt.
The Italian restaurant chain — which operates 93 locations in 25 states — said in a FAQ [PDF] the filing for bankruptcy was done after “very careful consideration and consultation” with financial and legal experts.
“Macaroni Grill decided that this would be the most effective path for it to shed legacy liabilities and obligations, as a result of decisions by past ownership,” the company notes.
The chain will operate in a “business as usual” manner during the Chapter 11 process, meaning that the company’s locations will remain open, loyalty programs will continue, and employees will be paid.
The Latest Problem
RedRock Partners, which bought the chain through its Mac Acquisition LLC in 2015, said in a bankruptcy court filing [PDF] that the company’s current woes stem from the same slow sales that have been affecting dining establishments in recent years.
In addition to feeling the pressure from fewer customers, the company notes that debt resulting from its sale in 2015 has continued to weigh on the chain.
As the company has struggled to pay its debts — estimated to be more than $23 million — the chain has already closed 37 underperforming locations.
Through the bankruptcy, the company seeks to restructure its current liabilities. To do so, the chain has obtained $5 million loan from Raven Capital Management to remain in business.