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Popular national restaurant chain explores Chapter 11 bankruptcy

The chain has suffered since the Covid pandemic and it may need financial help to have a chance to survive.

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The Covid pandemic helped restaurant chains with the infrastructure needed to pivot to delivery, pickup, and drive-through. McDonald's, Domino's, and Chipotle thrived, for example, because they had been investing in technology for years.

Those chains also have food that people are used to eating at home. Traditional sit-down restaurants tried to make the pivot to delivery, but customers did not necessarily want to pay sit-down prices to eat at home and some food travels better than others.

McDonald's menu adds two new sandwiches nationwide

Related: McDonald's menu adds two new sandwiches nationwide

For some chains, the Covid lockdown period came with a huge slowdown in business. The recovery, in many cases, was also slow, and recent months have shown some Americans being less willing to dine out.

You can blame inflation or just general economic concerns but some chains have not recovered to the level necessary to service the added debt they took on during the shutdown period. Add in that labor prices have pushed higher and some food items cost more and it creates a very difficult operating situation.

Burger King lost hundreds of restaurants across multiple franchisees and Boston Market has dwindled to a handful of stores. Now, another huge national brand has hired a consulting firm to consider a possible Chapter 11 bankruptcy filing.

Some restaurant chains have continued to struggle.

Image source: Shutterstock

Red Lobster has struggled

Red Lobster has a proud history and, in many ways, it brought lobster and seafood to markets where it otherwise was only offered in fine-dining experiences.

"Before there was Red Lobster, there was Bill Darden, a man passionate about making delicious, high-quality seafood available and affordable to everyone, including people who lived far from the coast and regardless of race, gender, religion, or economic means. What was once a single, family-owned restaurant in Lakeland, Florida, now has over 700 locations around the world," the company shared on its website.

The chain has been owned by Thai Union Group, which wrote down its stake in the company earlier this year.

“During the past years, the combination of Covid-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs have impacted to Red Lobster business resulting in prolonged negative financial contributions to the company and its shareholders,” Thai Union said in a Jan. 16 media release. “...After detailed analysis, the board of directors has determined that Red Lobster’s ongoing financial requirements no longer align with our capital allocation priorities and therefore the company is pursuing an exit of the minority investment.”

Red Lobster considers its options

The seafood chain hurt its financial position by offering its popular all-you-can-eat shrimp meal for $20. That worked to increase traffic, but it was a money loser for the chain. That deal remains on the menu, but it now costs $25.  

It's a situation that has the chain looking for a lifeline.

"Red Lobster has been getting advice from law firm King & Spalding, said the people, who asked not to be identified discussing a private matter. The dining chain is considering a possible Chapter 11 filing to shed some long-term contracts and renegotiate a swath of leases, the people said," Bloomberg reported.

Fortress Investment Group, the company's top lender, has been involved in the Chapter 11 discussions, according to the news service. 

Red Lobster recently changed CEOs. Horace Dawson stepped down and retired. Jonathan Tibus, managing director of management consultant Alvarez & Marsal. Tibus is considered a turnaround expert who helped Kona Grill and Krystal through their Chapter 11 bankruptcy filings.

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Why Run?

Why Run?

“It’s the perfect sport for a pandemic,” The New York Times wrote in 2021, explaining the surge in popularity of running…

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5 hours ago

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April 17, 2024

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Why Run?

“It’s the perfect sport for a pandemic,” The New York Times wrote in 2021, explaining the surge in popularity of running in the face of Covid-19 restrictions.

“All you need is a pair of shoes and a six-foot buffer from the next person,” the author Talya Minsberg described what she called a “back-to-basics exercise boom”.

With gym closures and restrictions on indoor activities and team sports, people turned to outdoor exercise as a safe and accessible way to stay active and maintain their physical and mental well-being.

Running offered a sense of freedom, a chance to escape the confines of home, and an opportunity to connect with nature amidst lockdowns and social distancing measures.

And while Covid-19 restrictions have long been lifted, many pandemic runners have kept at it, thanks to the addictive nature of a sport often belittled as boring and repetitive. According to a 2023 survey of roughly 4,000 active runners conducted by RunRepeat, almost 30 percent of the respondents started running during the pandemic.

So what is it that motivates runners to tie their laces several times a week? Beyond the immediate health benefits, the motivation to run often stems from a desire for personal challenge, stress relief and the pursuit of fitness goals. As Statista's Felix Richter shows in the chart below, based on survey data from Running USA, shows, staying in shape and healthy is by far the most-cited reason to run in the post-pandemic world, followed at quite some distance by stress relief and simply enjoyment.

You will find more infographics at Statista

Whether it's training for a race, improving cardiovascular health or simply enjoying the hypnotic rhythm of footfalls on pavement, running has become a cornerstone of many people's daily routines, fostering a global community united by a shared passion for movement, fresh air and athletic achievement.

Tyler Durden Wed, 04/17/2024 - 04:15

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Real-time detection of infectious disease viruses by searching for molecular fingerprinting

A research team consisting of Professor Kyoung-Duck Park and Taeyoung Moon and Huitae Joo, PhD candidates, from the Department of Physics at Pohang University…

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12 hours ago

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April 16, 2024

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A research team consisting of Professor Kyoung-Duck Park and Taeyoung Moon and Huitae Joo, PhD candidates, from the Department of Physics at Pohang University of Science and Technology (POSTECH) has engineered “broadband nanogap gold spectroscopic sensor” using a flexible material capable of bending to create a controlled gap. With the developed technology, it is possible to rapidly test various types of materials, including infectious disease viruses, using only a single nano-spectroscopic sensor to find molecular fingerprints.

Credit: POSTECH

A research team consisting of Professor Kyoung-Duck Park and Taeyoung Moon and Huitae Joo, PhD candidates, from the Department of Physics at Pohang University of Science and Technology (POSTECH) has engineered “broadband nanogap gold spectroscopic sensor” using a flexible material capable of bending to create a controlled gap. With the developed technology, it is possible to rapidly test various types of materials, including infectious disease viruses, using only a single nano-spectroscopic sensor to find molecular fingerprints.

 

The emergence of pandemic epidemics like COVID-19 has emphasized the necessity for rapid and precise analytical methods to prepare for potential future virus outbreaks. Raman spectroscopy, using gold nanostructures, offers information about the internal structure and chemical properties of materials by analyzing the distinct vibrations of molecules known as “molecular fingerprints,” using light with remarkable sensitivity. Therefore, it could play a crucial role in determining the positivity of a virus.

However, conventional high-sensitivity Raman spectroscopy sensors detect only one type of virus with a single device, thus posing limitations in terms of productivity, detection speed, and cost when considering clinical applications.

 

The research team successfully fabricated a one-dimensional structure at the millimeter scale, featuring gold nanogaps accommodating only a single molecule with a tight fit. This advancement enables large-area, high-sensitivity Raman spectroscopic sensing. Furthermore, they effectively integrated flexible materials onto the substrate of the gold nanogap spectroscopic sensor. Finally, the team developed a source technology for a broadband active nano-spectral sensor, allowing tailored detection of specific substances using a single device, by widening the nanogap to the size of a virus and freely adjusting its width to suit the size and type of materials, including viruses.

 

Furthermore, they improved the sensitivity and controllability of the sensor by combining adaptive optics technology used in fields such as space optics, such as the James Webb Telescope. Additionally, they established a conceptual model for extending the fabricated one-dimensional structure into a two-dimensional spectroscopic sensor, theoretically confirming the ability to amplify Raman spectroscopic signals by up to several billion times. In other words, it becomes possible to confirm the positivity of viruses in real-time within seconds, a process that previously took days for verification.

 

The achievements of the research team, currently pending patent approval, are expected to be utilized for the rapid response through high-sensitivity real-time testing in the event of unexpected infectious diseases such as COVID-19, to prevent indiscriminate spread. Taeyoung Moon, lead author of the paper, emphasized the significance of their achievement by stating, “This not only advances basic scientific research in identifying unique properties of materials from molecules to viruses but also facilitates practical applications, enabling rapid detection of a broad spectrum of emerging viruses using a single, tailored sensor.”

 

The collaborative research was jointly conducted with Professor Dai-Sik Kim’s team from UNIST’s Department of Physics and a team led by Professor Yung Doug Suh from UNIST’s Department of Chemistry who is Deputy Director of Center for Multidimensional Carbon Materials at the Institute for Basic Science (IBS). Additionally, Yeonjeong Koo, Mingu Kang, and Hyeongwoo Lee from POSTECH’s Department of Physics carried out measurements. The research findings have recently been published in the international journal Nano Letters.

Journal

Nano Letters

DOI

10.1021/acs.nanolett.4c00289

Article Title

Adaptive Gap-Tunable Surface-Enhanced Raman Spectroscopy

Article Publication Date

28-Mar-2024

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Another popular beer, brewery brand files Chapter 11 bankruptcy

It has been a dark period for breweries with countless brands going out of business.

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23 hours ago

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April 16, 2024

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When Anchor Brewing closed in July, it marked a symbolic change in the craft brewery business. That company, which had 127 years of history sort of embodied the spirit of upstart breweries offering alternatives to the big beer brands.

It was a very successful company that achieved national recognition and distribution which hit a brick wall during the Covid pandemic. Sales slowed, as bars were closed during the lockdown period and that created a financial hole the company could not escape.

Related: Mall retailer considers Chapter 11 bankruptcy as cash dwindles

Anchor Brewing's future remains unclear as the company has attracted a lot of interest but has not yet been purchased. It's situation, however, is not unique as pandemic-related woes forced a number of breweries and craft beer brand to shut down.

It was kind of a perfect storm where companies that made much of their revenue from on-site sales saw that business dry up. That created a situation where it was impossible to not lose money and that created debt that many breweries simply could not recover from.

Increased debt loads made making changes hard and lowered demand drove many regional favorites including Chicago’s Metropolitan Brewing, New Jersey’s Flying Fish, Denver’s Joyride Brewing, Tampa’s Zydeco Brew Werks, and Cleveland’s Terrestrial Brewing into bankruptcy.

The hits just keep coming as another regional favorite, Fargo Brewing, has filed for Chapter 11 bankruptcy protection.

Regional breweries have suffered since the Covid pandemic.

Image source: Shutterstock

Fargo Brewing has a deep community connection

Fargo Brewing not only brew beer, it also hosts relatively big-name bands. The company was built around beer, but its outdoor concert venue has hosted acts including Violent Femmes, rapper Prof, and country singer Shakey Graves.

"Since its founding in 2010, Fargo Brewing has been on a mission to bring our community together through the art of craft beer. We understand that you are more than just beer enthusiasts; you are the heart and soul of Fargo, and we are here to celebrate you," the company shares on its website.

The company has also made a point of staying connected to its community.

"As locals ourselves, we share your love of classic beer and celebrate the uniqueness of our city. That's why we put our heart into every batch, meticulously crafting beers that resonate with your diverse tastes. Whether you're a hop-head seeking bold flavors or a newcomer eager to explore approachable styles, we have specifically for you," it posted.

The company has a wide variety of beers on tap at its brewery, as well as at select other locations. Its beers range from its Fargo Lager, a very traditional beer to more exotic offerings including its Blood Orange Wood Chipper IPA and its Nitro Stone's Throw Scottish Ale.

Fargo Brewing files Chapter 11 bankruptcy

Fargo Brewing has filed for Chapter 11 bankruptcy protection under Subchapter V of the bankruptcy code. That means its debts are less than $7.5 million. The company also said that it expects to have funds available to pay unsecured creditors.

The company has not shared a financing or turnaround plan but it did share with the court that it has some assets that will lose value if over time. That likely refers to perishable goods used in making beer. 

Fargo Brewing reported assets in the range of $100-500,000. Its liabilities are in the $1-10 million range (based on the checked box on the bankruptcy form), but must be under $7.5 million based on it filing for Chapter 11 bankruptcy under Subchapter V.

The brewery appears to still be operational and events are listed on its website, with tickets still being sold for concerts well into July.  

 

 

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