In a prepared statement, Roadhouse president/CEO Ayman Sabi blames Orlando-based CNL Restaurant Properties Inc. for its involuntary filing.
"The company already has successfully negotiated with most of its creditors to restructure and repay its debts," Sabi says. But "one group of unsecured creditors, all affiliated with CNL, refused to settle out of court of court for past-due invoices, thereby forcing Roadhouse Grill into Chapter 11."
Sabi says the company was profitable in January and February and continues to operate daily with a complete staff.
"Roadhouse Grill is in a very strong position as it moves through Chapter 11 reorganization and we expect this strategic restructuring process will help us to merge a stronger, more dynamic enterprise," Sabi says in the statement.
He didn't disclose the amount owed to CNL Restaurant Properties. But GlobeSt.com reported April 8 CNL Financial Group Inc., CNL Restaurant's Orlando parent, gave the fund a $12.4 million infusion to cover a $24.4 million loss recorded in fiscal 2001 by American Properties Fund under which the restaurant group operates.
CNL blamed the Chapter 11 filings of Roadhouse Grill, Phoenix Restaurant Group Inc. and Houlihan Restaurant Group for American Properties' poor performance.
"All our vendors and creditors can have the confidence that they will be paid in full in a timely manner, in accordance with our contracts with each," Sabi says in the statement.
The Roadhouse executive says the company still plans to open restaurants in Europe this year in a joint venture with Italy-based Cremonini Group. Roadhouse owns 35 restaurants in Florida. The other units are in other Southeast locations and New York.
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