Fuddruckers has closed its three Colorado restaurants as a result of the Chapter 11 bankruptcy filing of its parent company. The closures, effective April 30, came down less than two weeks after parent company Magic Brands, LLC announced it was selling off $40 million worth of its assets to an investment company called Tavistock Group.
Using some touchy-feely verbiage, company chief executive officer Peter Lange addressed the hardships posed by the closures, saying in a release, "We regret that some team members have lost their positions as a result of the restaurant closures, but these difficult actions are essential to the long-term strength of Fuddruckers. By shedding burdensome leases under the protection of Chapter 11, Fuddruckers will regain the financial stability and flexibility it needs to pursue strategic growth initiatives that will benefit our brand, our franchisees and, most importantly, our guests."
The closures number just three out of 24 corporate-owned restaurants the chain decided to shutter as part of its restructuring. The affected restaurants were at 5076 South Wadsworth Boulevard in Littleton, 14035 East Evans Avenue in Aurora and 12020 Pennsylvania Street in Thornton.
The company says franchised restaurants have not been affected by the bankruptcy. Magic Brands also owns the Koo Koo Roo restaurant chain.