Bennigan’s and the Steak & Ale restaurant chains filed for Chapter 7 bankruptcy today and closed restaurants in Colorado and across the nation.
Plano, Texas-based Metromedia Restaurant Group, owner of the two popular chains and others — including and Ponderosa Steakhouse and Bonanza Steakhouse — said the bankruptcy affects company-owned restaurants but not those operated by franchisees.
Chapter 7 bankruptcies typically involve the closing and liquidation of firms, unlike Chapter 11 filings, in which businesses continue to operate and attempt to restructure finances.
Last month, Metromedia Restaurant Group held talks with its major lender, GE Capital Solutions, after GE said loan agreements had been violated.
Bennigan’s operates 11 restaurants in Colorado and about 310 nationally. There are no franchises in Colorado, so all its outlets here have shut.
Ponderosa and Bonanza restaurants are not part of the bankruptcy filing.
