Roadhouse Grill Having Some Financial Difficulties
Things are not looking good for the West Palm Beach-based Roadhouse Grill. Yesterday the company got court approval to liquidate its assets, which mainly include the leases of its 20 remaining restaurants.
U.S. Bankruptcy Judge Paul Hyman granted a motion by Roadhouse to use liquidation provisions of Chapter 7 of the federal bankruptcy law, according to court papers filed Wednesday.We used to go with our family years ago, and we remember loving the drop-the-peanut-shells-on-the-floor policy. (Totally not allowed at home.) But it's been a long time since we've eaten there, and judging from this news, it seems like most people have stayed away as well."There remains no ability for the debtor to continue operations as the debtor's only asset was the remaining 20 leased stores," Roadhouse said.
The company said it failed to cure defaults on the leases by May 9 in accordance with a May 5 court order allowing it to assume the leases. Roadhouse said a $1.3 million loan from MCF Development LLC didn't come in time to make the payments.
Roadhouse and RHG Acquisition Corp., owner of 85.5 percent of Roadhouse Grill shares, filed for court protection for the second time on Oct. 7. It listed assets and debt of less than $100 million in a Chapter 11 filing in U.S. Bankruptcy Court in West Palm Beach.
Roadhouse Grill gets court OK to liquidate [Bloomberg News via Palm Beach Post]
Roadhouse Grill [Official Site]
Photo: edublogger/flickr
