A smaller Logan’s Roadhouse Inc. said that it has emerged this week from bankruptcy with less debt.
The company closed 34 locations during the bankruptcy, which it filed in August amid steeply falling traffic and sales that made it difficult to pay its $400 million in debt.
In bankruptcy, Logan’s trimmed that debt to just over $100 million, which lowered the company’s interest expenses. The company also said that it renegotiated leases to save $4 million in annual costs.
Logan’s now has 195 company-operated locations and 26 franchised units in 20 states.
“We have a committed management team and a unified vision for the company that returns Logan’s to its roots,” Nishant Machado, senior managing director at the firm Mackinac Partners who is leading the turnaround effort, said in a statement. “The pieces are now in place for a very bright future for our guests, employees and investors.”
The company has worked on several initiatives to improve sales at the chain. It revised the menu, returning some popular items that the chain had dropped. The company also streamlined operations, started a marketing effort highlighting its steaks and ribs, and spent more money on training and compensation to recruit and retain workers.
“While the industry as a whole has faced significant headwinds, which have been widely reported, we believe the roadhouse steakhouse concept is one which appeals to a large majority of Americans,” Machado said. “Logan’s is focused on providing guests with value, quality and a superior experience.”