TAMPA Fla. Sam Seltzer’s Steakhouses of America Inc. filed for Chapter 11 bankruptcy protection on Friday, obtaining a $1 million credit line to support it during its restructuring. The nine-unit operator said in filings that it was forced to seek protection from creditors by debt from a previous expansion and the consumer fallout from weak economic conditions and the rise in fuel costs.
In 2005, the steakhouse chain had announced aggressive expansion plans to grow to 30 units and said it secured an $11 million credit line to support the growth. Earlier this month, however, it closed its Lakeland, Fla., location.
Local media reports quote chief executive John Mountford as saying the core group of restaurants would remain open during the reorganization. He said the company plans to emerge from Chapter 11 as soon as it can with “the capital structure and balance sheet to allow it to grow.” Calls to corporate headquarters were not returned as of this posting.
Sam Seltzer’s opened its first unit in Tampa in 1995.