While filing for bankruptcy is certainly a difficult decision for many business owners, partnerships and corporations, the truth is that a bankruptcy can actually be a very positive move that can greatly benefit a business in the long run.
Just last week, Real Mex Restaurants, the parent company to well-known Chevys Fresh Mex, emerged from Chapter 11 bankruptcy. This came after a group of investors acquired a rather large stake in a $129 million deal. Around the time it was announced that the company was exiting bankruptcy through restructuring, it was also announced that Chevys Fresh Mex is in the middle of a major overhaul to not only its food, but also its general look and brand.
Previously, some of the complaints against the 26-year-old restaurant chain were related to staffing issues, poor food quality and that Chevys was generally outdated.
However, now the restaurant plans on introducing a lunch menu that would be more competitive to fast food chains, such as Chipotle, in terms of price and convenience. Additionally, there will be updates and renovations to the actual restaurant spaces too.
When looking at what had happened to cause the parent company to file for Chapter 11 in October, owners pointed to the downturn in the economy resulting in many customers no longer going out to eat in actual restaurants, which is a complaint that many business owners have made over the past several years.
However, looking to the future, with this restructuring through bankruptcy and changes to the restaurant chain, there is a chance that Chevys can once again be financially successful.
Source: Los Angeles Times, “Post-bankruptcy, Chevys Fresh Mex tries pilot project, lunch menu,” Tiffany Hsu, March 28, 2012