- Front Page
- Biz Tools
Unfortunately for the 36 franchisees of Damon's, their franchisor's holding company needs their chain's healthier cash flow to pay for the bankrupt sister company, Max & Erma's. So fifty-unit barbecue chain Damon’s Grill has filed for Chapter 11 protection, just days after its sister brand, Max & Erma’s, filed for bankruptcy.
Restaurant consultant Tracy Coats, speaking on behalf of Reinert, said Friday that Damon's filed for bankruptcy protection to keep its stock from being taken over by its creditor, National City. The bank is not part of PNC Financial Services Group Inc.
"Damon's cash flows very nicely, and you want that cash flow to pay for Max & Erma's debt," he said. - NRN
Ah, the problems of being in a conglomeration of brands. Sometimes Peter must borrow from Paul to pay Mary.