As a result of approximately $416 million dollars in debt, Logan's Roadhouse, Inc., Logan’s Roadhouse of Texas, Inc. and Logan’s Roadhouse of Kansas, Inc. filed for bankruptcy protection on August 8, 2016 in the United States Bankruptcy. Court. Logan's has experienced an approximate 4% decrease in sales from January 2016 to June 2016. Many customers are simply looking for less expensive alternatives which has resulted a decrease in customer traffic of approximately 8.8% during the same time period.
Logan's has approximately 234 company-owned locations. During the bankruptcy, Logan's is expected to close approximately 18 under-performing locations and to restructure its operations. A plan is in place to assist employees that will be impacted by the closure of some restaurants.
Logan’s also has approximately 26 franchised locations. It is unknown how the bankruptcy filing may impact the franchised locations.
By filing a Chapter 11 bankruptcy, Logan's will be able to continue to operate the restaurants selected to remain open while using the bankruptcy protection to restructure the company. Many people mistakenly view bankruptcy as the worst thing that a company or individual can experience. However, bankruptcy can actually help both companies and individuals overcome difficult financial times. Many companies use a Chapter 11 bankruptcy to restructure their businesses. Chapter 7 and Chapter 13 are often used by consumers to obtain a fresh start and to eliminate debt.