Local Ryan's buffet restaurants close as part of company's bankruptcy filing
At least two Ryan's buffet restaurant locations in the Grand Strand have closed because of its parent company's plans to file for Chapter 11 bankruptcy.
Buffets, LLC, is set to file Chapter 11 bankruptcy so that it can "restructure its debts and liabilities, strengthen its operations by closing certain weaker restaurants and recapitalize its business, " according to a release from the company that owns Ryan's Fire Mountain, Country Buffet, Old Country Buffet, Tahoe Joe's Famous Steakhouse and Hometown Buffet.
Our Grand Strand News Alliance partner, the Sun News, reports that the local Conway and Surfside locations of Ryan's closed over the weekend, disappointing many customers who came for lunch on Monday.
The company reported last month it had closed 70 of its locations.
"Buffets, LLC, was acquired by merger in August of 2015. The Chapter 11 filing is prompted by the discovery of liabilities, or alleged liabilities, that we believe were not disclosed in our negotiations," says Peter Donbavand, Vice President for Business Development. "We intend to investigate the propriety of the disclosures, and intend to consult with our counsel regarding any remedies we may have."
Donbavand said there was an unusual, steep decline in sales at some restaurants. He also said that several large, long-term contracts that existed before the merger could have outstanding debts.
See more on this story from our partner, The Sun News, here.: http://www.myrtlebeachonline.com/news/business/tourism/article64578807.html#storylink=cpy