Brinker sold these two restaurants to Metromedia, good thing. These long term fixtures took Chapter 7 which means kaput. Bennigans as the article said was loaded with debt, no doubt used to purchase from the wiser Brinker who apparently saw this coming. Leverage works both ways and high debt raises fixed costs as we learn in managerial accounting. High gas prices mean less travel, gasoline demand has fallen for the last 14 weeks. And so casual chains niched just above fast food like these are squeezed. As one realtor observed to me years ago, folks with paid for property make money.
Comments