Latest News 2011 June Bankruptcy Shuts Down Restaurants During Guest's Meals

Bankruptcy Shuts Down Restaurants During Guest's Meals

Though their bankruptcy was not yet announced to their employees, three Marie Callender's restaurants in Washington state abruptly shut and locked their doors, after escorting dining customers out, as reported by Komo News in Seattle.

Also left behind in the wake of the closures were over 100 unwarned restaurant employees.

The closures took place on Sunday, June 12, in the middle of the afternoon.

M.C., the manager of the Marie Callender's in Northgate said, "I thought it was a big joke, because I was like, 'I still have people in the restaurant,' and they were like, 'they need to leave.'  There was a party of 25 in the back room. It was somebody's birthday party, and I feel so bad that we like ruined the celebration."

M.C. said that there were approximately 50 employees at his location, 50 at the Federal Way restaurant and dozens more left without jobs in Spokane.  He added, "Some of them have two kids and somehow they have to find alternative income to keep living. It's a big shock.   I love working here. I love the people I work with."

Vivian Brooks, the corporate spokeswoman for Marie Callender's said, "This was a very difficult decision to make. We certainly apologize to any guests in the restaurant. There are certainly a variety of factors that go into the decision-making process. I can't go into that specifically. It is a well thought-out but a very difficult decision."

Brooks gave no further details on why the closures were made without notice.

The next day Perkins & Marie Callender's Inc., which is the restaurant chain's parent company, announced that the Chapter 11 bankruptcy protection filing.

The filing was made on Monday, June 13, in the United States Bankruptcy Court in Delaware.  It was cited that due to a loss of traffic to better funded competitors they could no longer afford to build new restaurants or upgrade any of their existing locations.

Customer H.B. that drove to the Northgate location for a meal on Sunday was met with locked doors and a sign that read they had closed.  Baker said, "They're closing all the Marie Callender's? That's terrible."

A food deliverer, N.P. also met with locked doors when she arrived to collect a customer's order. Pugh said, "It's kind of a big surprise. I've been doing this work for about two, three years, and the smaller restaurants we see it happen to but the big chains like this, not so often."

But the hardest job, and maybe the last task for manager M.C., was to tell his staff what he himself had just learned. M.C. said, "It's a big shock. A lot of people (were) crying.   (had to) gather 15 of my employees and let them know, 'hey I'm sorry guys, but tomorrow, you don't have a job.'"

Filing for a personal or business bankruptcy requires thoughtful preparation.  Contact a bankruptcy attorney today for help planning for the best outcome.

Categories: Filing for Bankruptcy