TBO.com - TBO is Tampa Bay Online

Bennigan's Close; Company Files For Chapter 7 Bankruptcy

Tribune photo by JIM REED

Former Bennigan's employees Tom Cannone, left, and Courtney Haynes wait for word about their pay following the closing of the Dale Mabry location.

ADVERTISEMENT

By MICHAEL SASSO and RICHARD MULLINS

The Tampa Tribune

Published: July 29, 2008

Updated: 07/29/2008 02:02 pm

TAMPA - Several Bennigan's restaurants in the Tampa Bay area closed suddenly, along with hundreds nationally, as the corporate owner of the chain filed for bankruptcy protection and liquidation.

Steak & Ale restaurant locations may also be closing. Steak & Ale and Bennigan's are owned by Metromedia Restaurant Group of Plano, Texas. Managers at the Steak & Ale at 204 N. West Shore Blvd. said that location was closed today, and they did not know whether it would open Wednesday.

Calls to Metromedia were not returned today. The Associated Press reported today that Metromedia filed for Chapter 7 bankruptcy protection, a legal process in which assets would be sold off.

There are at least 10 Bennigan's locations in the Tampa Bay area. Employees at Bennigan's restaurants in Brandon and on Dale Mabry Highway and Fowler Avenue in Tampa reported they were told this morning their locations would be closed permanently.

A nationwide closure would represent one of the largest stumbles for U.S. restaurants, which have been struggling amid an economic slowdown. Bennigan's, an Irish-themed, "fast casual" restaurant, focused on midtier menu items such as sandwiches and beer.

Laura Woodard, who works at a Bennigan's in Lakeland as a server, host, cook and sometimes dish washer, said she suspected something was amiss with the chain this summer when her location started offering a "Cash Crunch Lunch" deal, offering burgers and more expensive drinks for $4.99. That was especially cheap, she said, and it probably lost money on each deal, she said.

"It definitely worked; we were slammed," Woodard said. "Then, as soon as that deal ended, we were slow again."

Woodard found out she had lost her job via cell phone text messages from co-workers.

"I was there last night until closing washing dishes. Now I don't have a job."

In June, the Wall Street Journal reported that Metromedia was in talks with its major lender, GE Capital Solutions, to hold off a possible bankruptcy filing.

Metromedia is a unit of Texas billionaire John Klug's business holdings. Without naming sources, the Journal reported that Metromedia this year violated several terms of its lending agreement with GE Capital Solutions, prompting the lender to declare a loan default and accelerate payments.

There are signs that not all Bennigan's restaurants may be closing, however.

Christian Cook, general manager of the Channel District location, said it would stay open today, unless told otherwise by corporate officials. That location is a private franchise, owned by the Tampa-based firm Team Irish.

Cook said his restaurant has been fielding many calls from employees of other Bennigan's looking for employment because their locations were closing.

"We're a successful Bennigan's, always in the top three locations regionally ever since we opened," Cook said. "So we're hoping to have continued success."

Metromedia also operates the Ponderosa steakhouse chain.

Reporter Rich Mullins can be reached at rmullins@tampatrib.com

Share this:

Loading Comments...

Email Print

ADVERTISEMENT