Sizzler USA, the family-casual restaurant famously known for its steak and salad bar, filed for Chapter 11 Bankruptcy on Monday.
The 62-year-old restaurant chain said the filing is a direct result of the financial impact caused by the COVID-19 pandemic after halting in-door dining for an extended amount of time.
“Many restaurant brands across the country have suffered because of COVID-19 and Sizzler USA is no exception,” said Sizzler President and Chief Services Officer Chris Perkins in a press release. “Our current financial state is a direct consequence of the pandemic’s economic impact due to long-term indoor dining closures and landlords’ refusal to provide necessary rent abatements.”
Perkins said the action was made to secure a stronger future for the chain’s 14 company-owned restaurants, and support employees and franchisees during the pandemic.
According to the company, the chain has 90 franchised locations, one of which is operating in Kissimmee, Florida.
The filing comes as a shock to many on social media as news began to spread of the filing Tuesday morning.
The company said it will also begin a restructuring process that will help reduce long-term debt and renegotiate leases with landlords for its 14 company-owned restaurants.