Bennigan's chain goes broke

July 29, 2008 12:38:37 PM PDT
Restaurant chains Bennigan's and Steak & Ale have filed for Chapter 7 bankruptcy protection and stores owned by its parent company will shut their doors. The companies owned by privately held Metromedia Restaurant Group of Plano, Texas, filed for bankruptcy protection. It wasn't clear whether franchisee-owned restaurants would be closing as well.

At least 300 restaurants will close and thousands of employees laid off.

In a Chapter 7 bankruptcy filing, a company seeks to liquidate its assets and shut down.

Neither Bennigan's nor the Metromedia Restaurant Group returned calls for comment.

Restaurants have been struggling amid high gas prices, the weak housing market and inflation. Hardest hit have been casual dining chains and bar and grill restaurants, which charge higher prices than fast food and other quick-service chains.

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