However, a Buffets spokeswoman tells GlobeSt.com that the company has now decided to stay in its current space, though she says she does not know the lease term. She says the lease will be revealed in a court motion that will be filed by Monday. "As part of our bankruptcy, we had to review every contract, including our property leases," she says.
The company, which now operates less than 600 restaurants such as Old Country Bueffet, HomeTown Bueffet, Ryans, Fire Mountain and Tahoe Joe's Famous Steakhouse in 39 states, has pulled out or is vacating about 50 restaurant leases, including the Tahoe Joe's at 1030 Howe Ave. in Sacramento, CA. "We don't anticipate any other closures at this point, we're doing business as usual and think we're moving forward," the spokeswoman says.
The bankruptcy was filed in January, and the company was granted approval for a debtor-in-possession credit facility of $285 million in February. Company officials said in a statement that a decline in discretionary spending and rising costs and commodity prices forced the restructuring.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.