Restaurant Opts for Chapter 7 Bankruptcy

One restaurant company tried to restructure its debts, but failed, and had to seek a different type of bankruptcy.

The company, which operates Mexican chain restaurants in California, New York, Acapulco and El Torito, initially filed for bankruptcy with the hopes of restructuring its debts. Several months into the business bankruptcy process, however, and the company realized that there was no financial way of accomplishing this goal.

Instead, the company filed for Chapter 7 bankruptcy protection this month, which means that it is likely to conduct a sale of its assets. In its filing, the company blamed a poor economy for cutting into its sales. Starting in 2008, the company noticed fewer people dining out in an effort to conserve money. While the company once saw sales exceed half a billion dollars annually, that number dipped to $478 million last year.

Are you considering business bankruptcy? If so, you'll want to discuss your options with a Chicago bankruptcy lawyer from our law office as soon as possible. To arrange a case evaluation, contact Bizar & Doyle, LLC now!