Bennigan's in Warsaw will remain in business despite the national chain filing for bankruptcy.
Tuesday afternoon, Mike Stetzel, general manager of the Ramada complex that includes Bennigan's, said, "This restaurant is not going to cease operations. It's going to continue."According to CNN.com Tuesday, restaurant chains Bennigan's and Steak & Ale have filed for Chapter 7 bankruptcy protection and will shut their doors. The companies filed for bankruptcy protection in the Eastern District of Texas.
In a Chapter 7 bankruptcy filing, a company seeks to liquidate its assets and shut down.
Privately held Metromedia Restaurant Group, based in Plano, Texas, is the parent company of Bennigan's and Steak & Ale.
CNN.com reported the company indicated that it has up to 49 creditors. It said it will have no funds left after administrative expenses are paid to repay its creditors.
Stetzel said the Warsaw Bennigan's is independently owned. "They don't own this restaurant, the building or business," he said.
To run the restaurant as Bennigan's, Stetzel said, they just pay a fee to license the name, food and materials.
Stetzel said they have not received any direct communications from the national chain. The company also has not returned phone calls to Stetzel.
The Warsaw Bennigan's has 60 employees, according to Stetzel.
