Restaurant chains Bennigan's and Steak & Ale have filed for Chapter 7 bankruptcy protection in one of the largest restaurant insolvencies in the U.S., according to media reports.
The Wall Street Journal
said that both chains have shut down more than 300 eateries and are shedding thousands of workers. According to the report, employees were told late Monday that there would not be enough money to pay them for the rest of the week. Both Bennigan's and Steak & Ale will liquidate assets and are not expected to re-open.
Both restaurant chains are owned and managed by Metromedia Restaurant Group, which also controls Bonanza, Ponderosa, 29 Degrees and Southlake Tavern. The latter two also are also shuttering locations, according to the
Among publicly traded restaurant companies,
was gaining 3.1%,
was 2.9% higher,
was adding 2.7%, and
was up 2.5%.
In other bankruptcy news,
reported that department store Mervyn's, which operates 177 stores, will file for bankruptcy protection in the next few days, according to sources familiar with the situation. A bankruptcy filing would put Mervyn's in the same group as Steve & Barry's LLC, cataloger Lillian Vernon and Linens 'n Things, all of which have sought bankruptcy protection this year.