The largest operator of Golden Corral, 1069 Restaurant Group LLC, voluntarily filed for Chapter 11 on October 5, in the U.S. Bankruptcy Court for the Middle District of Florida.
The franchisee operates 33 locations of the popular buffet chain across the greater Orlando and Atlanta areas. The company has accumulated $49.7 million of debt, due to its rapid fall in earnings during the coronavirus pandemic.
“The pandemic's business impact on our segment has been significant,” Golden Corral CEO Lance Trenary told Restaurant Business. “Recovery has been steady, but slow, and some franchisees will not be able to continue to operate without additional financial relief.”
The franchisee had closed all its restaurants in March, due to mandated lockdown protocols. This was followed by the fu...