Logan’s Roadhouse files for bankruptcy; 18 restaurants closing

The chain operates 250 locations nationwide, including 23 in Alabama.

For the quarter ending October 28, the chain saw revenue drop 9.9 percent to $131.3 million, with same-store sales falling more than 4 percent.

Logan’s has entered into a restructuring support agreement with revolving facility lenders and holders of over 83.9 percent of about $378 million in notes that will reduce debt by over $300 million, Keith Maib, chief restructuring officer, said in court papers.

Logan’s says it will close 18 restaurants that are underperforming and will focus on “key operational initiatives” to improve guests’ experience. Keith Maib of Mackinac Partners, who also has brought along two colleagues, most recently worked in the same role at Colt’s Manufacturing Co., the legendary gun maker based in CT.

As a part of the plan, Sam Borgese, who has been chief executive officer since 2014, will resign, according to a statement.

LRI, Logan’s parent, had $347.2 million of assets and $546.1 million of debts as of June 30, according to its bankruptcy petition.

Logan’s is obtaining $25 million of financing to keep operating while in bankruptcy. A hearing has been scheduled for Tuesday.

Founded in Lexington, Ky., in 1991, Logan’s was purchased by Lebanon, Tenn. -based Cracker Barrel Old Country Stores in 1999, and the parent company became known as CBRL Group, Inc.

The Nashville, Tenn. -based chain and several affiliates filed for protection from creditors with the US bankruptcy court in Wilmington, Del.

Logan’s has been controlled since 2010 by Kelso & Co, a New York-based private equity firm.

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