The company is backed by Versa Capital Management.
(Reuters) – The parent of the Black Angus Steakhouse restaurant chain filed for Chapter 11 bankruptcy on Thursday, the latest in a fast-growing list of business bankruptcies caused by the troubled economy and lower consumer spending.
Pecus ARG Holding Inc, based in Los Altos, California, filed for protection from creditors with the U.S. bankruptcy court in Wilmington, Delaware. Black Angus has 69 restaurants in seven western U.S. states and employs more than 3,600 people, a court filing shows.
Lisa Poulin, Pecus’ chief restructuring officer, in a filing said “the recessionary economic environment” caused lower sales, which fell about 26 percent from 2006 to 2008.
“Making matters worse, the debtors’ restaurants primarily are located in some of the areas hardest hit by the mortgage crisis, causing consumers in those markets to cut back on discretionary spending, such as dining out,” she added.
The case is In re Pecus ARG Holding Inc, 09-10170, U.S. Bankruptcy Court, District of Delaware (Wilmington). (Reporting by Jonathan Stempel; editing by John Wallace)