According to an article in the Dallas Morning News, Oceanaire Inc. a high-end seafood restaurant has filed for Chapter 11 bankruptcy protection in Dallas but will keep its Galleria location open.
The article said:
“The company said its moves will improve the chain’s cash flow and should allow it to emerge from court protection by the end of the year. “During our restructuring, we expect to conduct business as usual in the vast majority of markets and intend to work with our current vendors and to continue operations without interruption to our customers,” president Terry Ryan said in a prepared statement sent to Twin Cities media.”
The filing is just one symptom of the high number bankruptcies and other financial woes ripping through the high-end restaurant industry. Right here in Dallas-Fort Worth, high-end restaurants such as Bob’s Steak & Chop House and N9NE Steakhouse have filed for bankruptcy protection as they saw their revenues plunge because of the recession.
Many consumers are cutting back on spending as they fear job losses and many restaurants are suffering as a consequence. For some restaurants, bankruptcy can offer a reprieve from creditors while they reorganize their debts and hopefully emerge from bankruptcy more profitable. But for some restaurants, such as N9NE Steakhouse, bankruptcy has simply meant closure and liquidation of their assets.