In more than one location? I mean even if they wrote "cease operations immediately - NO EXCEPTIONS!" you still don't throw folks out in mid-dine? At worst, lock the door (or don't let anyone in), send home anyone waiting for a table, as well as anyone with an order that hasn't started yet perhaps, but mid-dine? That's insane!

The thing is that these places are no longer low-end, price-wise. The average family of 4 is going to get out of there for under $100, but often, not a lot less. If they bring in a coupon and don't order beverages, or skip the pie, there is no profit.

It costs a fortune to keep one of those restaurants open. The ones that closed immediately were probably the ones that had the worst leases, not the worst sales.

In any case, this is only one of the "mid range places that serves you frozen food off a SYSCO truck" that is going to fall. I don't even know what their pies are like anymore. But I enjoyed them 30+ years ago!

I know someone who used to work in the outdoor equipment industry, who said that when a retailer goes bust they always do this sort of thing - because the creditors (manufacturers) get tipped off and are waiting outside to take unsold, un-paid-for goods back the second it is announced, and this is to be prevented. So the second the decision is announced, the stores are always evacuated and the shutters brought straight down.

Neil

Um, when a company files bankruptcy (I take it that this is your "going bust"), if a creditor did that knowing of the filing, the creditor is going to lose more than payment. I would love to be in court when a debtor objects to such a creditor´s 503(b)(9) claim when it had already removed goods in violation of the automatic stay. A fun time will be had by almost everyone in the courtroom. One party will probably leave poorer and crying.

In the case of the Pie, the bankruptcy papers (including some of the "first day" orders) probably required what was done to be done, although one wonders why this didn´t happen either before or after hours. It isn´t like the attorneys actually file anything in paper at the clerk´s office.

If the debtor files a Chapter 7 (liquidation), the debtor cannot operate the business at all, so it must shut down immediately. Only a trustee can get an operating order in Ch. 7.

In a UK context, yes. Chapter 11 and similar do not exist as such in the UK - if you're bust, you're bust, and the receivers are called in[1] to try to liquidate the business as far as possible. Parts of the business can be sold on without some of the debt liability, but that's somewhat different in that it isn't intended[2] to allow the existing owner to continue in business.

[1] Often it continues to trade while they do so, but not necessarily, I believe.

[2] It does happen, though, in that it's not uncommon for the old owner to set up a new business to buy some of the old one, assuming they have not been disqualified from doing so.

Neil

I first remember MC's from the late 60's when we ordered pies for Thanksgiving. Flash to the early 80's and they began to open more upscale locations to compete with the hot new TGIFriday's and Houlighans. Those early locations in San Diego had a line at night to get into the bar.

My how times have changed.