Bennigan’s, Steak & Ale File for Bankruptcy

As noted in today’s news, Metromedia Restaurant Group has filed for Chapter 7 bankruptcy for Bennigan’s Grill & Tavern and Steak & Ale, closing all company-owned stores—a total of 292 units. Chapter 7 bankruptcy, often considered the point of no return, calls for liquidating assets rather than reorganizing and protecting stores.

Bonanza and Ponderosa Steakhouses, two other Metromedia chains, did not seek bankruptcy. Also, according to Bennigan’s Franchising Company, the 138 Bennigan’s franchise stores in the United States and overseas will remain open.

High input costs and a weak economy have contributed to a difficult climate for the restaurant industry of late—particularly casual restaurants and bar and grills.