Friday, January 16, 2009

Another super-sized franchsee goes bankrupt

A reader of my blog on the Fohboh social networking site pointed out another major restaurant bankruptcy that came to light earlier this week. John Gantes, head of the 110-unit Breckenridge Group, a multi-concept franchisee in southern California, reportedly filed for personal bankruptcy in late 2008 and is now trying to reorganize his sprawling operations.

Breckenridge is a franchisee of El Pollo Loco, Famous Dave's, Johnny Carino's, Burger King, Applebee's, Bruegger's, Ruby's Diner and Arby's, according to the Orange County Register.

The OCR story sites court documents indicating that Gantes owes $280 million.

The week also brought an acknowledgement from Domino's that nine of its franchisees had gone bankrupt, and a Ch. 11 filing by the parent of the Black Angus steakhouse chain.

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