Geez, another one bites it!

[chuckster]

Apple Capitol Group intends to file for brankruptcy protection under Chapter 11. They also intend to sell the real and personal property associated with its stores at auction.
What this means is that 21 Applebees in Delaware, Pennsylvania, Maryland, Virginia and West Virginia will be closing soon. This includes, as far as I know, the California, Waldorf and Prince Fred stores.
This is getting crazy! These chains have to slow down their growth or get better management to control the profitability.
Looks like we get another empty store front.

 

[AnniesDad]

Originally posted by chuckster
Apple Capitol Group intends to file for brankruptcy protection under Chapter 11. They also intend to sell the real and personal property associated with its stores at auction.
What this means is that 21 Applebees in Delaware, Pennsylvania, Maryland, Virginia and West Virginia will be closing soon. This includes, as far as I know, the California, Waldorf and Prince Fred stores.
This is getting crazy! These chains have to slow down their growth or get better management to control the profitability.
Looks like we get another empty store front.

Where are you reading this? Here's an article I saw about a month ago with a different outcome.


OVERLAND PARK, Kansas, July 16 (Reuters) - Casual restaurant chain Applebee's International Inc. (nasdaq: APPB - news - people) on Tuesday said it would pay $32.8 million cash to buy the assets of 21 franchises in mid-Atlantic U.S. states, which filed for bankruptcy protection as part of the deal.

The acquisition of the restaurants, housed in a franchisee entity called Apple Capitol Group LLC, is part of Applebee's announced growth strategy to buy back franchises, Applebee's Chairman and Chief Executive Lloyd Hill said in a statement.

"We believe the territory in which the Apple Capitol restaurants are located will ultimately support a total of approximately 40 Applebee's restaurants," Hill said.

Following the deal, Applebee's will own about 24 percent of its 1,427 restaurants. The deal is seen closing in the fourth quarter and is expected to add to fiscal 2003 earnings, but to have no effect on fiscal 2002 earnings, Applebee's said.

The acquisition needs approval from the bankruptcy court and Overland Park, Kansas-based Applebee's will need to obtain operating licenses and other third-party consents.

Apple Capitol bought the restaurants -- located in Maryland, Virginia, Delaware, Pennsylvania and West Virginia -- in May 1999 from Avado Brands Inc. Apple Capitol filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Southern District of Florida, Applebee's said.

Applebee's shares increased 27 cents, or 1.3 percent, to $20.60 on the Nasdaq before the announcement.

 

[chuckster]

AnniesDad

Well I hope that yours is the correct article. Mine came out of the Mid-Atlantic Restaurant Digest for August. It just came in the mail Friday to a friend of mine.

Like I said, I hope yours is more current.

 

[giggles04]

I sure hope thats correct... because that would bite if Applebees left.....

ya know... we need a Cracker Barrel

 

[Cracka]

The only time I tried to go to our Applebees here there was a line to get in so we left and I never have tried to go back to it since.I went to one in North Carolina this weekend(no waiting )and really liked it,hope they don't close ours down.

 

[SmallTown]

The only real bad thing about the Applebees here is the amount of parking, and manuevering in and out of that side parking lot.

Hopefully it will not be closing down. If it does, it obviously wasn't due to lack of business, so then maybe the demos would support another restaurant??