One of America's first casual restaurant chains has officially filed for bankruptcy, CNN Business reported on Tuesday.
Sizzler, USA has filed for Chapter 11 due to the coronavirus. Because social distancing has forced restaurants to close their dining rooms, Sizzler has been unable to pay rent at its 14 company-owned locations. As a result, the 62-year-old chain explains that it has been forced into this situation due to the landlords' refusal to provide rent relief.
"Our current financial state is a direct consequence of the pandemic's economic impact due to long-term indoor dining closures and landlords' refusal to provide necessary rent abatements," Sizzler President Chris Perkins said in a statement.
Despite this, there is a bit of good news for Sizzler-lovers. The company is only filing bankruptcy for its 14 company-owned locations and not its international establishments or 90 franchised restaurants throughout the United States. Sizzler also hopes to exit bankruptcy in 120 days and the company-owned locations will continue to operate.
Sizzler is just the latest example of how the food industry has taken a hit during this pandemic. The social distancing restrictions and the inconsistency of delivery/takeout orders have led to reservations at restaurants dropping around 40 percent. It has also forced local establishments and national chains to close their doors—includes chains like Vapianos and California Pizza Kitchen.
