Sizzler Chain Files for Bankruptcy
September 24, 2020
Sizzler, the restaurant chain founded in Culver City in 1958, has declared bankruptcy, filing for Chapter 11 in the U.S. Bankruptcy Court for the Northern District of California on Monday.
The company, which currently operates 107 locations, said that the filing is “a direct result of the financial impact the Covid-19 pandemic has had on the casual dining sector.”
In a statement, Sizzler said its goal is to keep restaurants open throughout the bankruptcy process, which will involve renegotiating leases for 14 company-owned locations. The company’s 93 franchisees — who own and operate the vast majority of locations — will not be impacted by the filing.
Sizzler, now based in Orange County, is the latest restaurant chain to file for bankruptcy amid the coronavirus pandemic. In the past four months, 9 restaurants chains filed for bankruptcy, including Chuck E. Cheese, California Pizza Kitchen, Le Pain Quotidien, Brio Italian Grill and Souplantation which closed permanently.
"Many restaurant brands across the country have suffered because of COVID-19 and Sizzler USA is no exception," Sizzler President Chris Perkins said in a statement. "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."
Sizzler said it hopes to complete the bankruptcy process within 120 days.