“Bennigan’s is always looking for the right person to join our team and the opportunities are endless,” reads the Web site for the Irish American Grill & Tavern that shocked consumers and employees Tuesday by shuttering approximately 150 company-owned stores across the nation.
In one of the largest restaurant insolvencies in U.S. history, Bennigan’s and Steak & Ale took the atypical route and filed for chapter 7, according to reports. Often companies apply for chapter 11 bankruptcy to allow time to hedge away debt and to continue operations. If the chapter 7 filing is accurate it may make it a little harder for “employees who might have to get in line to get their final paycheck and compensation,” says Barbara Kate Repa, author of Your Rights in the Workplace.
“A bankruptcy court will step in and arrange a list of priorities, former employees are really high on the list,” says Repa. “However, another truth is that you can really wring water from a stone.”
At this time, questions concerning the debt and structure of Bennigan’s remain up in the air. Calls to numerous Bennigan’s throughout the U.S. were greeted with incessant ringing or automated operator responses, including “Goodbye” and “This number is not in service.” At a franchise location in the South, a manager says, “We’re not affected by the bankruptcy. I don’t know what’s going to happen. As far as I know, we’re still open.”
The 138 franchisee owned restaurants are not part of the bankruptcy filing and are expected to remain open. That’s good news for employees attempting to survive on minimum wage and tips during these economic tough times. For others, the news may have come as as a surprise. At a location in Illinois, the Chicago Sun Times reported that a sign read: ‘To all our employees: I must say this is the hardest thing we have ever had to do. It’s not only a job we are losing but a family we have here is not replaceable. Thank you for all the hard work, dedication and commitment to making this place amazing. Love, Jen, Ronda and Jonathan.’
