Platinum Corral, a franchisee of Golden Corral operating in North Carolina and Virginia, has filed for Chapter 11 bankruptcy after closing more than half of its restaurants, management revealed on Friday.
The company said it was looking to protect itself from creditors due to declining sales due to the pandemic. The record shows that Platinum has just under $ 49.4 million in liabilities. It is believed to be the second largest franchisee in the Golden Corral system.
Sixteen of the buffet restaurants have been closed permanently, according to a company statement, while two that were temporarily closed are expected to reopen. Platinum said it has tried to operate a number of its restaurants as cafeterias, with limited indoor seating, but the redesigns “has proven to be financially unsustainable.
The company is the second major franchisee of Golden Corral to file for bankruptcy since the start of the pandemic. The system’s largest franchise operator, 33-unit 1069 Restaurant Group, filed for Chapter 11 creditors relief in October. He also cited the slowdown in the pandemic as the reason.
The buffet market has been particularly affected by the pandemic due to its characteristic style of service. At the onset of the COVID crisis, many states suspended the operation of self-service restaurants over fears that this model could promote the spread of the coronavirus from one buffet user to another.
Golden Corral initially closed all 35 restaurants operated by the company in the chain of 490 stores. In an interview with Catering companiess about two weeks ago, CEO Lance Trenary said about 290 units were open, 40 of which function as cafeterias.
The chain has experimented with a number of alternative styles of serving, including drive-thru and take-out. He also revealed plans to try out a quick, easygoing service model where customers give their orders at the counter and take a seat.
Platinum currently has six Golden Corrals open in North Carolina, its home state, and four in Virginia. He plans that two more – one in each state – will open later this year.
“We are confident that the restructuring will give us the opportunity to successfully operate 12 Golden Corral Buffet restaurants in North Carolina and Virginia for the long term,” said Bill Sewell, President and CEO of Platinum, in a statement. communicated.