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In the work of the restaurant, parking can collapse quickly. Since the work has such small margins in the first place, even the small contraction can turn the profit into a loss.
This can happen for several reasons. Consumers may eat simply less because they are concerned about the economy. They may also trade and choose cheaper restaurant levels (or more).
Related: The famous whiskey brand files, Chapter 11, bankruptcy
A person can become a bitter person or a person “something cheaper” when his budget is not easily covered by his high -end tastes. Some people, of course, are just caution, while others face the facts of their personal financial status.
Restaurants are also vulnerable to other aspects of the economy. If employment costs, which generally have, this puts pressure on the end result. The same is true when it comes to other ingredients and costs.
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Of course, a restaurant sometimes fails because it loses customers. A new competitor may take the market share, or perhaps the total tastes change.
In fact, it is usually a mixture of multiple things that pull a restaurant down. However, sometimes salvation comes after failure, and the new owner may be sufficient to fix a series that appears on his last legs.
Photo and colon source; Shutterstock
On the border was on the edge of the abyss
At the time of submitting bankruptcy on March 5, bankruptcy participated, on the border, this description of itself in bringing it to the court.
“Founded in Dallas, Texas in 1982, on the border, is famous for the Mesian grilled Vigitas, award -winning Margarita, homemade and endless potatoes. Bold flavors from Texas and Mexico.”
The series had already closed 77 sites before the bankruptcy, but it was shrinking. In the document, the company tried to explain the edge of the market.
“On the border, it works to take advantage of its unique and authentic brand to distinguish itself from others in the informal food sector. As of the date of the petition, the debtors continue to operate 60 (60) restaurant sites in eighteen (18) states. All sixty (60) of the restaurant sites where the debtors operate.
The series also contains 20 additional restaurants in the United States and South Korea.
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Closed sites extend to 24 states including Arizona, Arkansas, Colorado, Concitect, Florida, Georgia and Ilinoi, Indiana, Iowa, Kansas, Maine, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Benzelvana, and Takkl.
The main part of the bankruptcy file in Chapter 11 was about leaving the lease contracts at sites that are no longer busy.
On the border has a new owner
On the border, the border entered the bankruptcy by obtaining $ 10 million from the financing of the debtors of the owners with OTB LENER, LLC, a PAPPAS restaurant company, to finance the semester 11.
“In addition, the company expects to enter the asset purchase agreement with a subsidiary of OTB LENER, LLC, shortly after the start of Chapter 11 cases”, participated in the court file.
It could have appeared higher, but this is not what happened. Papas participated that it had won the rights of the Border brand in a press statement on May 7.
“This acquisition will combine two commercial brands in Texas residing in Texas and expand the presence of Papas in the Tex-MEX category by adding a recognized concept at the national level that offers bold flavors at an accessible price point,” I have participated.
The new owner sees a logical purchase, given its current wallet.
“On the approach that is moved by the value on the border, Cantina completes Papasito, known for its fresh ingredients, amazing fabrications, and Margarita that reaches hands, and a high energy atmosphere. Brands will allow together Papas restaurants to offer a wide range of guests across more markets,” PAPPAS participated.
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The new owner did not share whether he was planning to close any other sites.
Its headquarters in Houston, Texas, Papas Restaurants is a family-owned restaurant group with a group of iconic brands, including Pappadeaux Seafood Kitchen, Papasito’s Cantina, Pappas Bar-BQ and Pappas Bros. Steakhouse.
