The 62-year-old firm mentioned it filed for Chapter 11 due to Covid-19, which pressured it to briefly shut its eating places’ eating rooms. Sizzler USA additionally had issues paying lease. The submitting is just for Sizzler’s 14 company-owned eating places — not its worldwide places or greater than 90 franchised US eating places. Sizzler defined in a press launch that it is utilizing the chapter course of to cut back debt and renegotiate its leases.”Our present monetary state is a direct consequence of the pandemic’s financial influence because of long-term indoor eating closures and landlords’ refusal to offer needed lease abatements,” mentioned Sizzler President Chris Perkins in a press release. The corporate goals to exit chapter in about 120 days and company-owned places will proceed to function.Sizzler eating places are predominantly on the West Coast, with a majority of them in California. The chain started in Culver Metropolis, California in 1958 with the purpose that “everybody may take pleasure in a terrific steak dinner at an reasonably priced price,” in accordance with its web site. As soon as a pioneer within the business, the chain has fallen out of favor with newer rivals like Applebee’s and TGI Friday’s. The business confronted a brand new blow this 12 months due to the pandemic. Restrictions on indoor eating and the robust economics on being profitable from supply or take out have pressured a lot of chains to file for chapter, together with California Pizza Kitchen and Vapiano. Reservations at eating places are roughly 40% under common, in accordance with CNN Enterprise’ knowledge.