Orange County-based restaurant chain Sizzler, known for its moderately priced steaks and expansive salad bar, filed for Chapter 11 bankruptcy Monday, blaming falling sales on the COVID-19 pandemic.
According to the publication Restaurant Business, the Mission Viejo-based chain, which operates 107 locations, reported between $1 million and $10 million in liabilities and the same amount in assets.
The company anticipates emerging from the Chapter 11 bankruptcy process within 120 days, according to the report.
“The filing is a direct result of the financial impact the COVID-19 pandemic has had on the casual dining sector, particularly long-term indoor dining closures and landlords’ refusal to provide necessary rent abatement,” according to a Sizzler USA statement.
Calls to Sizzler by City News Service seeking further comment were not immediately returned.
According to the company, the filing will allow Sizzler “to do everything we can to support our employees and franchisees” and “build a stronger future.”
According to Eater Los Angeles, sales at Sizzler were already declining before the pandemic, and it remains unclear how many locations will return, if any, following the bankruptcy filing.
The company owns 14 restaurant locations outright, while the remaining 93 are franchises, and it will be looking to renegotiate lease terms with landlords at those locations, at least, Eater reported.