Good Lifestyle

Since the bankruptcy depositLast September, the long chain of the Steakhouse Sizzzler family is on an uncertain path in the future. He came out of the protection of Chapter 11 in January with a reorganization plan, but he relies on a second round of payroll protection program funds to stay the course. However, his loan application was blocked by the administration of American small businesses (SBA) due to bankruptcy and the channel is currently pursuing the agency in a final ditch effort to stay afloat.

RELATED:This bankruptcy sandwich chain is about to disappear

With the PPP application deadline ending on May 31, Sizzler's probability gets the $ 2 million loan is uncertain. Do not do so can ensure that the company suffer significant losses, including "loss of money to pay for employees and basic operating expenses", according to the prosecution.

The chain affirms that the "outfit" placed by the Agency on its application goes against the new rules proposed on April 6, which now allow companies that have emerged from bankruptcy to access PPP funds. But as his request was blocked on two distinct deposits, the time of the chain to obtain the necessary cash injection can be up.

"There is a substantial probability that the remaining PPP funds are completely exhausted before May 31," the complaint said.submitted on May 24. "Although Sizzler's restaurants have done everything in its power to obtain a second PPP principle, the Illegal Rules, Regulations and Practices of the SBA designed to illegally exclude debtors from participating in the PPP prevented him from doing so."

This would be the second PPP loan from the chain since the beginning of the pandemic. According toFSR magazineThe channel received $ 3.9 million from SBA in April 2020, but the loan was not enough to keep it bankrupt.

"Our current financial statement is a direct consequence of the economic impact of the pandemic", President of Chris Perkins de Sizzlernoted In the deposition of bankruptcy in September, "because of the closure of long-term interior restaurants and the refusal of the owners of the supply of necessary annuities."

However, Sizzzler was declining, even before the pandemic disappears from dinner businesses. The company lost places and sales were declining five consecutive years in 2019, depending onRestaurant Business. The channel currently operates just over 100 restaurants, including 14 belonging to the company. Its bankruptcy ranking only affected these locations and none of the franchised restaurants in the United States or its activities abroad.

For more information on troubled chain restaurants, see:

• This bankruptcy sandwich chain is about to disappear
• 12 catering chains disappear in 2021
• The largest rapid catering chain of America is on a downward spiral, reports say

And do not forget toSubscribe to our newsletterTo get the latest news from the restaurant delivered directly to your inbox.