Bennigan’s Closes With No Warning
Tuesday
Jul 29, 2008
This morning in a terrible show of corporate responsibility, Bennigan’s contacted their managers at 7:30a and told them to be on a conference call at 8a. They were told in no uncertain terms, ‘We’re closing. Lock up and go home.” The managers were told to furlough all employees and leave — for good and oh, by the way, don’t talk to the media.
The parent company of Bennigan’s, Ponderosa and Steak & Ale is Plano based Metromedia Restaurant Group. The company has filed for Chapter 7 - rather than Chapter 11 which allows for reorganization. A few weeks ago, as we reported on this blog, Bennigan’s had quietly shuttered most of their locations in the Florida market. Now, it’s nationwide.
Metromedia is supposed to be issuing a statement later today.
This move places hundreds of Dallas area workers on the unemployment line.
In late May, Clay Dover, president and chief executive of Metromedia, quit abruptly after about six months on the job saying he and the owners could not agree on “the strategic direction for the company.”
Days later, the company denied a report in The Wall Street Journal that it had prepared a bankruptcy filing, but admitted that it was “currently in the process of formulating a proposal to present to its lenders to restructure its indebtedness…”
Due to the recent economic situation, restaurant business is down across the nation approximately 35%.
NOTE: Links were not included in this posting because all related sites to Metromedia / Bennigan’s are off line.


Comments
1
rbday
July 29th, 2008 at 1:47 pm
This is just one more failure due to the greed of W. Bush & the Republican Congress.
Editor’s Note: Actually, the Congress and Senate are currently in the hands of the Democrats and have been since 2006.
2
aggiegirl
July 29th, 2008 at 3:52 pm
I am pretty sure this has little to do with President Bush or Congress and more to do with the fact that they offered terrible food. Just a guess though.
3
Ralph
July 29th, 2008 at 7:05 pm
Doesn’t the WARN act that requires 60 days notice before a mass shutdown like this?
http://en.wikipedia.org/wiki/Worker_Adjustment_and_Retraining_Notification_Act
4
Stuart
July 30th, 2008 at 12:36 am
The WARN Act also is not activated when the following coverage thresholds are unmet:
If 50-499 workers lose their jobs and that number is less than 33 per cent of the employer’s total
5
bzp
July 30th, 2008 at 3:03 pm
I took my first and only wife on a 1st date to a Bennigans. This was in the late 80’s. The food and service were great back then. I have to agree with aggiegirl that the service and food quality had declined in recent years.
As for blogger, rbday, what a lack of contact with reality. Typical Al Gore-ian liberal!
We’re seeing the results of 12 years of Clinton-omics. If Clinto had paid attention to the economy & national security instead of chasing skirts the USA wouldn’t be in this mess!
And to the editor, thank you for your response to rbday!
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