Like many other restaurants, Steak 'n Shake became a distressed dining facility due to COVID-19. But similar to the brands that have filed for bankruptcy since March 2020, the company struggled to stay solvent before the pandemic.
For the moment, Steak 'n Shake avoided succumbing to the same fate. But now the company's debt obligations are fast approaching.
What's more, the restaurant had already closed a number of its locations, either temporarily or permanently, in an effort to keep its most successful locations open in the long term.
Debt and Decreased Ratings
Even under the best circumstances and with a successful business model, Steak 'n Shake faced an uphill climb.
When the burger chain bought back some of its distressed debt in April 2020, Moody's downgraded its co...