The last remaining Ryan's restaurant in Springfield closed over the weekend, a casualty of a bankruptcy filing and nationwide cost-cutting measures.
Employees of the 2501 S. Campbell Ave. buffet-style restaurant were left jobless without being informed, according to a
report by KY3. The news mirrors myriad complaints on the
Ryan’s Facebook page, where individuals from multiple cities claim the company closed restaurants and laid off employees without warning.
On Monday, Buffets LLC, the owner of Ryan’s, HomeTown Buffett, Roadhouse Grill, Fire Mountain and other restaurant chains, filed Chapter 11 bankruptcy.
In the filing, the company that also does business as Ovation Brands Inc. reported estimated assets of $10 million to $50 million against liabilities of $50 million to $100 million. The company reported 100-199 creditors.
In a news release announcing the bankruptcy, Buffets officials said the filing would allow the company to restructure debts and liabilities, as well as “strengthen its operations by closing certain weaker restaurants.”
"Buffets LLC was acquired by merger in August of 2015. The Chapter 11 filing is prompted by the discovery of liabilities, or alleged liabilities, that we believe were not disclosed in our negotiations," Buffets Vice President for Business Development Peter Donbavand said in the release. "We intend to investigate the propriety of the disclosures and intend to consult with our counsel regarding any remedies we may have."
Food Management Partners acquired Buffets, aka Ovation Brands, in August for an undisclosed amount, according to a
Nation’s Restaurant News report. A Food Management Partners spokesperson did not respond to a request for comment by deadline.
USA Today reports the company has closed 166 restaurants over the last several weeks and cut 6,000 jobs when 92 stores closed in recent days.
The Springfield restaurant property is owned by the Faith Fayman Strong Trust based in Baxter Springs, Kan., according to the Greene County assessor’s website. The 3.3-acre property has a 2015 taxable appraised value of $1.7 million.
The closure comes four years after the 1950 E. Kearney St. location of Ryan’s shuttered following a separate bankruptcy filing by Buffets Inc., according to
Springfield Business Journal archives.
