[Ed. – Anyone in business recognizes that this is a prelude to changing the employment basis for a lot of people (i.e., full-time to part-time), and probably closing sites down. You can’t “reorganize” an unprofitable business and keep all the sites or employees if you want to keep operating. Chapter 11 and supervised reorganization is the way to remove sites and/or people with minimum liability exposure.]
As progressives around the country lobby for a higher minimum wage, one restaurant group which employs thousands of individuals has been forced to declare bankruptcy in order to stay in business due to mandated hourly pay increases.
Bloomberg News reports that Restaurants Unlimited, Inc. “which operates 35 restaurants ranging from fine dining to “polished casual” eateries, including Henry’s Tavern, Stanford’s and Kincaid’s, filed for Chapter 11 protection in Delaware on Sunday.”
Chief Restructuring Officer David Bagley directly blamed “progressive wage laws” for the move.