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.”
