As anticipated, Logan’s Roadhouse, founded in Lexington in 1991, on Monday filed for Chapter 11 bankruptcy in Delaware.
The Nashville-based steakhouse chain, known for letting patrons eat buckets of free peanuts and drop the shells on the floor, announced that as part of the reorganization it will close 18 under-performing restaurants, which haven’t been publicly identified yet.
The chain has more than 250 restaurants, some of which are franchised. Lexington has three: the original one on South Broadway, one at Rojay Drive by Fayette Mall, and one on Pavilion Way at Hamburg.
The company said that employees of the 18 restaurants will be offered reassignments to other Logan’s restaurants, outplacement services and other job help.
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In a statement, Logan’s said that CEO Sam Borgese will leave. The casual dining chain had struggled with falling sales recently and is the fourth restaurant chain to file for bankruptcy since November, following Quaker Steak & Lube, Buffets LLC (which operates Old Country Buffet, HomeTown Buffet, Fire Mountain and Ryan’s), and Johnny Carino’s, which filed in July. Most have blamed slumping casual dining sales and increased competition.
Logan’s had more than $546 million in debt as of June 30; the company went public in 1995 and was bought by the Cracker Barrel chain in 1999 before being sold to a privately held LRI in 2006.