The chain of restaurants McGrath completo Fish House, Salem, announced onWednesday that presented their 20 businesses under Chapter 11 bankruptcy.
An ill-timed expansion outside the Northwest, in mid-2007, was the origin of all thefinancial ills of the company. McGrath completo Fish House businesses in theSouthwest went through difficulties in the midst of the recession, said its founder,John McGrath.
“It’s been a very difficult situation for us,” he said.
As people spend less in general, losses are more pronounced for restaurants. Andforeclosure rates skyrocketed in Arizona, where McGrath has three restaurants.
Meanwhile, the company is indebted to launch and maintain their new restaurants,Statesman Journal reports.
Chapter 11 protection will allow the chain to operate normally and keep most of theirrestaurants open – perhaps all – while he designed a plan of reorganization. McGrathwill continue complying with the terms of the gift cards, said the founder of thecompany.
“We have to wait and see what happens with the lenders,” said McGrath.
“McGrath became an institution in Oregon and southwest Washington. We are doingeverything possible to preserve that tradition”, said.
Bankruptcy in Arizona, AZ documents show that the estimated assets of the business are USD 10million to USD 50 million, as well as their liabilities. The company has between 1,000and 5,000 creditors.
General Electric Capital Corp is the first in the list of creditors without preferentialrights, with nearly USD 3.8 million, of which $ 2 million are preferential. SterlingsSavings Bank claims more than $ 3.4 million, of which approximately USD 2.4 millionare preferential.
Attorney Leon Simson of Tonkon Torp LLP, Portland, represents McGrath’s case.
McGrath opened the first restaurant McGrath completo Fish House in Salem in 1980on a “shoestring budget”, with loans of cash from family members and a smallbusiness administration loan. Today the chain has about 1,000 employees, of whomhalf live in Oregon and southwest Washington. The company has also restaurants inIdaho, Colorado, Arizona and Utah.