The Steak and Ale restaurant on West Broad Street near Glenside Drive, which closed on July 7, will not reopen. On Monday the company filed for Chapter 7 bankruptcy protection. A note taped to the door tells customers to “Visit our Hampton location.”
Managers at both chains were told late Monday evening not to open restaurants on Tuesday, according to the Wall Street Journal. The same article said that employees were told there wouldn’t be enough money to pay them for the rest of the week.
The two sit-down chains are owned and managed by Metromedia Restaurant Group, based in Plano, TX. Metromedia also manages chains Bonanza, Ponderosa, 29 Degrees Tavern and Southlake Tavern. The latter two are closing, but Bonanza and Ponderosa, including the Ponderosa on England Street in Ashland, appear safe for now.
The filing brings light to a troubled business sector, as mid-priced, sit-down restaurants continue to struggle with high ingredient and labor costs. They are also facing a stingier consumer who is looking to save money in the face of high gas prices and declining home values. People are eating out less often, and when they do eat out, they are going for cheaper, faster meals.