Retail stores and restaurant chains have been hit hard by the recession. Although just now gaining some financial ground in recent months, not all have been spared the scar of financial burden. The owner of the popular restaurant chain, Hooters, has filed for Chapter 11 bankruptcy protection.
Restructure To Regroup
Cornett Hospitality LCC owns and operates several popular restaurant chains around the country, including nine Hooters locations. Also governing dining places like three Topeka’s Steakhouse and two prior ownerships of Max & Erma’s, the company has been in the restaurant owning business for years.
After falling behind on rent on a few locations the company has been struggling to maintain its debt obligations for a while now. Listing 287 creditors with a total debt liability between $1 and $10 million, Cornett Hospitality is seeking bankruptcy protection over all of its 12 restaurants. Director of the company, Phil Cornett, says all locations will remain open for business as the company works to resolve its debt obligations through Chapter 11.