Bankruptcy has struck Orange County once more, this time in the closing of one of two Fuddruckers restaurants in Lake Forest.
More from the OC Register online:
“One of two Fuddruckers restaurants in Lake Forest closed its doors permanently Thursday — the result of the burger chain’s parent company filing for bankruptcy protection this week.
The restaurant at 26771 Rancho Parkway is now closed, but another Lake Forest Fuddruckers six miles away (23621 El Toro Road) will remain open, according to the chain’s parent company Magic Brands. A Fuddruckers in Thousand Oaks is also scheduled to close at the end of business Thursday, company representatives said Thursday. (More on the Lake Forest closure)
They restaurants are among 24 Fuddruckers that will close by April 30 under a plan that calls for Magic Brands to file for Chapter 11 bankruptcy protection, and sell its assets to Tavistock Group for $40 million. Lake Forest and Thousand Oaks are the only two California Fuddruckers that will close. The Buena Park Fuddruckers will remain open.
Magic Brands also owns Koo Koo Roo restaurants.
‘We regret that some team members have lost their positions as a result of the restaurant closures, but these difficult actions are essential to the long-term strength of Fuddruckers,’ said CEO Peter Large. ‘By shedding burdensome leases under the protection of Chapter 11, Fuddruckers will regain the financial stability and flexibility it needs to pursue strategic growth initiatives that will benefit our brand, our franchisees and, most importantly, our guests.’
More than 200 Fuddruckers restaurant locations remain open and their daily operations will continue as usual. Gift cards purchased at closed restaurants will be honored at all Fuddruckers and Koo Koo Roo locations.”
“Guests will see no difference in the quality dining experience they have come to expect in our restaurants,” Large said. “Our daily operations will continue as usual in more than 200 restaurants across the country. Employees will be paid without interruption.”
they seem to leave out of their statment of all
the small vendors they owed money to and put out
of bussiness.
they could have handled it in a different manner
as to not hurt the small bussiness person so badley.
but they did not care one bit about anyone they hurt
or put out if bussiness.
in their court filings this had been planned snice
january. the owner had put about 8 million dollars
of his own money in the company. but it was in the
form of bonds so he will recoupe his money, while
leaving the small bussiness person that trusted the
company probley with nothing, according to court
papers they have 10million in assetts and 50 million that
they owe. this is the worst case of fraud in bankruptcy
that i have ever heard of. everyone involved should go
to jail.
bankruptcy is a tool to help a failing bussiness not
a tool so the corporate officers can recoupe their money.
they should take the money from the sale.
{if their is a sale} and split it
up amoung the creditors. not to be used as a
tool to sell a company that had BAD MANGMENT.
I performed a maintenance service for one of the stores for over 24 years, and my service was terminated last week on one days notice. No mention whatsoever of bankruptcy from the manager. I got a letter that evening from the lawyers representing creditors informing me of the chapter 11 filing.
Between 4/21, and last week, Fuddruckers was trying to get me to perform additional work at their location, all while I had not received back payments for several months. I believe they did this knowing I would not receive compensation in a timely fashion.
I am holding out hope that I will be fully paid what I am due. Seems it’s always the little guy that gets screwed in this world, while the fat cats just keep rolling along.