Ryan’s restaurant in Cape Girardeau closes; parent company files for bankruptcy

A look at Ryan's restaurant in Cape Girardeau Tuesday, March 8, 2016 after the announcement the chain will close this location.
GLENN LANDBERG ~ glandberg@semissourian.com

The Ryan’s restaurant in Cape Girardeau has closed. A sign on the door indicated a halt in service began Sunday and requested employees to return Tuesday afternoon “for further instruction.”

Kim Miller, a representative of the restaurant chain, confirmed the closing of the Cape Girardeau location.

Buffets LLC, which comprises several national restaurant chains including Ryan’s, announced its plan Monday to file for Chapter 11 bankruptcy.

The filing will let the company restructure debts and liabilities and strengthen operations by closing weaker restaurants, according to a release from Food Management Partners (FMP).

In the news release, Peter Donbavand, vice president for business development at FMP, said, “Buffets, LLC, was acquired by merger in August of 2015. The Chapter 11 filing is prompted by the discovery of liabilities, or alleged liabilities, that we believe were not disclosed in our negotiations.”

Among matters made known only after the merger is an $11.37 million default judgment against Buffets LLC, formerly known as Buffets Inc., the release states.

The lawsuit was not disclosed by the sellers, “and Buffets LLC, is attempting to overturn such judgment on the basis of the wrong defendant entity having been sued and other grounds. Buffets Inc., the named defendant, was not the entity actually operating the restaurant where the alleged incident occurred.”

Donbavand also noted other issues affecting the restaurants, including an unusual decline in sales and several large, long-term contracts only recently determined or alleged to be behind on payments.

The situations have to be addressed to continue operations and are under review by financial and legal professionals, he said in the release.

“However, we are completely committed to the continued operation of these brands, and this is a necessary step for us to take to make this happen,” Donbavand said.

The assets of the Cape Girardeau Ryan’s location, as well as other restaurants nationwide, will be liquidated.

According to Auction Nation’s company website, a preview will begin at 10 a.m. today. Assets include “complete contents of restaurant including equipment, furniture, decor and smallwares.”

bbrown@semissourian.com

(573) 388-3630

Pertinent address:

130 Vantage Drive, Cape Girardeau, MO

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