The chain has 256 restaurants operating in 23 states, with 230 of those company-owned, and the rest franchisees.
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The Nashville, Tennessee-based chain tried to attract diners with Southern-inspired cuisine such as bread pudding, brisket nachos and glazed chicken wings, as well as Happy Hour deals, but revenue sill fell 9.9 percent to $131.3 million in the quarter ended October 28.
The company’s “customers continue to face pressure on discretionary income, directly correlating to depressed restaurant sales and reduced customer traffic”, Logan’s chief restructuring officer Keith Maib said in a court filing. Keith Maib of Mackinac Partners, who also has brought along two colleagues, most recently worked in the same role at Colt’s Manufacturing Co., the legendary gun maker based in CT.
“The company will be closing 18 underperforming restaurants as part of the overall efforts to improve the company’s financial performance”, the company said in a statement.
Company CEO Sam Borgese is also leaving as part of the restructuring.
Logan’s has about $416 million in debts, nearly all of which is secured, according to a court filing.
Logan’s is obtaining $25 million of financing to keep operating while in bankruptcy.
Founded in Lexington, Ky., in 1991, Logan’s was purchased by Lebanon, Tenn. -based Cracker Barrel Old Country Stores in 1999, and the parent company became known as CBRL Group, Inc. In 2010, Roadhouse Holding Inc., formed by Kelso & Co. and some management, acquired Logan’s.
While the chain is headquartered in Nashville, the company filed for Chapter 11 in DE, where it is incorporated.
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