Bennigan's Franchisees Eye Closed Locations

After their franchisor went belly-up last week, Bennigan's franchisees were left still open but scratching their heads on how to pick up the pieces. They seem to be quickly taking the bull by the horns. With professional help, franchisees are now looking at cherry-picking those closed company restaurants.

Bennigan's and Steak & Ale franchisees are hoping to buy between 40 and 60 restaurants closed by the chains' parent company when it filed for bankruptcy protection, according to Rob Carringer, managing partner of CRG Partners Group LLC, a financial restructuring firm working with the franchisees to set up operations in the wake of the filing. [AP via BusinessWeek]

Another pressing issue is what to do with gift cards from now-closed company restaurants. Competitors are cleverly honoring the cards in an attempt to gain new loyal customers. Carringer said that an agreement from all [Bennigan's] franchisees to accept the cards is "very close."