Struggling casual dining chain Logan’s Roadhouse is preparing to file for bankruptcy as soon as this month, according to a report in Bloomberg.
The filing would come after a year in which the Nashville, Tenn.-based chain has increasingly struggled with falling sales, low cash reserves and a heavy debt load.
The company has delayed its previous two quarterly earnings filings. In May, Logan’s reached a forbearance agreement with its lenders, and then extended that agreement last month.
The 256-unit chain indicated in federal securities filings that it was talking with its lenders and “other stakeholders” regarding strategic alternatives to improve its liquidity.
The company has not reported earnings for the past two quarters. But in the third quarter last year, revenues fell nearly 10 percent and the company nearly doubled its net loss to $24.4 million. It also reported an operating loss of nearly $12 million. Same-store sales fell 4.3 percent, and traffic fell 7.4 percent.
Logan’s reported $391.4 million in long-term debt, and $12.9 million in cash.
“The company does not comment on market rumors,” Brad Jacobus, vice president of marketing for Logan’s Roadhouse, said in an emailed statement. “The company’s leadership continues to be committed to its future success.”
Amy Bertauski left as the company’s CFO in February last year. James Hagen replaced her the following May, but by September he left and Logan’s named Edmund Schwartz the interim CFO.
Reports of a bankruptcy filing come amid an increasingly difficult period for the restaurant industry as sales slow, and particularly for casual dining concepts that have struggled to generate traffic for years.
The casual dining chain Quaker Steak & Lube filed for bankruptcy last year and was sold to TravelCenters of America this year. Earlier this year, the operator of Old Country Buffet and Ryan’s, Buffets LLC, filed for bankruptcy, and in July Johnny Carino’s filed for debt protection.
Contact Jonathan Maze at [email protected]
Follow him on Twitter: @jonathanmaze
UPDATE, Aug. 3, 2016: This story has been updated to include a response from Logan’s Roadhouse.