this should clear up some stuff
Moorhead Bennigan’s to remain in business
Tracy Frank, The Forum
Published Wednesday, July 30, 2008
The Moorhead Bennigan’s Grill and Tavern will not close, despite reports that Bennigan’s restaurants throughout the country are shutting down due to bankruptcy.
“At this point in time, we’re not sure what, if any effects it’s going to have on us,” said Lisa Stenstrom, controller of Sterling Restaurant Management Group, which does business as Bennigan’s Grill and Tavern in Moorhead.
“Our plan right now is just to remain open with business as usual,” she said.
While the Bennigan’s corporation sets up food contracts for better pricing, the Moorhead Bennigan’s restaurant buys its supplies independently, Stenstrom said.
S&A Restaurant Corp. and affiliates Steak & Ale and Bennigan’s Grill and Tavern restaurants have filed for Chapter 7 bankruptcy, according to a statement from Leah Templeton, company spokeswoman.
Stores operated by franchisees, such as the Moorhead location, are not named as debtors in the filings, Templeton said in the statement.
The filings do not include Ponderosa and Bonanza, which operate under Metromedia Steakhouses Co. L.P., Bennigan’s parent company, according to the statement.
“These are filed as liquidation cases. Future decisions regarding the affairs of the debtor companies will be determined and administered by the trustee,” Templeton said in a statement.
The company indicated in the filing that it has up to 49 creditors, according to a report by The Associated Press. It said it will have no funds left after administrative expenses are paid to repay its creditors.
A Chapter 7 bankruptcy case does not involve filing a repayment plan as in Chapter 13. Instead, a bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds to pay creditors.
Stenstrom has not heard how many restaurants have closed. She did not hear about the bankruptcy from the company.
Templeton said that her statement, which did not include information on how many stores would close, is all the information she has at this time.
According to CBS 2 in Chicago, the corporate-owned locations make up about half of the chain.
The company’s Web site states there are more than 310 locations in 10 countries. The Web site does not say anything about the closings.
The Chicago news station also reported that managers said they were not warned of the mass shutdown, which went into effect at midnight Monday.
The Forum previously reported that the Fargo Bennigan’s restaurant, 1776 45th St. S., closed on June 29. That restaurant, which opened in November 1999, closed for unrelated reasons, Stenstrom said.
The Fargo Bennigan’s closed because the owner, Kevin Bartram, who also owns the Moorhead franchise, received an offer and decided to sell, she said.
It was the only Bennigan’s Grill and Tavern in North Dakota, according to the company’s Web site.
Bennigan’s is an Irish American grill and tavern. The restaurant offers salads, burgers, steak and chicken entrées, sandwiches and desserts. Bennigan’s is based in Plano, Texas.
Bennigan’s Grill and Tavern
- Ownership: Kevin Bartram
- Where: 3333 Highway 10 E., Moorhead
- Contact: (218) 291-3333
- Info:
www.bennigans.com
Readers can reach Forum reporter Tracy Frank at (701) 241-5526