S & A Restaurant Corp., which operates Bennigan's, Steak & Ale and The Tavern restaurants, has filed for bankruptcy under Chapter 7 today, effectively putting it out of business. A Chapter 7 filing means they will sell off all their assets and pay off their debtors from the proceeds.
Even with the filing, those businesses that are franchised out will continue operating, as only corporate-owned locations will be shuttered. Bennigan's has 150 franchisees that will continue operations at this time.
Steak & Ale will be completely shut down, as all 58 restaurants were company owned.
Also operating under the Metromedia Steakhouses Company LP division are the Bonanza and Poderosa chains, which aren't part of the bankruptcy proceedings.
In the Chapter 7 filing, the privately-owned company revealed it has up to 49 creditors.
S & A Restaurant Corp. is a unit of Metromedia Restaurant Group.
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