Metromedia Steak Houses, owner of the Ponderosa and Bonanza restaurant chains, announced a chapter 11 bankruptcy filing Wednesday. The company reportedly has assets totaling less than $10 million. It is planning a reorganization to "a profitable core" of restaurants, suggesting store closings in the near future.
Metromedia was also the parent company of Bennigan's and Steak & Ale, which closed for good under Chapter 7 bankruptcy this summer.
Regional footwear chain Shoe Pavilion is going out of business and holding liquidation stores at its remaining 64 locations. Shoe Pavilion, once the largest off-price independent footwear store on the west coast, had 117 stores at its peak. The 29-year-old chain filed for Chapter 11 bankruptcy in July in advance of the liquidation.
Shoe Pavilion's web site prompts visitors for a password and subsequently redirects to a Yahoo Stores error page.
Regional department store Mervyn's, having previously entered Chapter 11 bankruptcy, is expected to convert to Chapter 7 and proceed with a full liquidation of assets. The chain had already closed 26 stores and put their locations up for sale.
Teen retailer Forever 21 was recently considering a purchase of 150 Mervyn's stores in an expansion move, but no deal was closed.
The Sharper Image, which filed for bankruptcy in February and sold its remaining assets in June, has forged a licensing agreement for its name. The company has sealed a (surprisingly strong) $540 million, five-year arrangement with Homedics to create products for sale in a variety of retail locations.
Sun Country Airlines filed for bankrupty protection today. Last week Tom Petters, the founder of Sun Country's parent company, was charged by federal agents with fraud and money laundering, and was arrested last week.
Sun Country currently has no plans to change its service or staff levels.
Hawaiian clothing and souvenir retailer Hilo Hattie filed for bankruptcy protection Thursday, citing "the rapidly deteriorating economy, historic oil price levels, and the weakening of Hawaii's tourist-driven economy." The nine-store chain, which operates as a subsidiary of a parent company, plans to restructure its debt without closing stores or laying off employees.
