Sizzler Announces Bankruptcy Local Restaurants Will Not Be Affected By Action

Sizzler International Inc. said Monday it is filing for bankruptcy, seeking protection from creditors amid a plan to turn around its finances.

The company, which operates Sizzler restaurants around the world, said it will close 130 of its company-owned Sizzlers in the U.S., leaving it 85. The company will also close six of its Buffalo Ranch Steakhouse restaurants.

Neither of Spokane’s two Sizzler restaurants will close, because both are locally owned franchises, said Michael Card, who owns the two restaurants with partners John Weldon and Kurt Gomer.

“Both the Sizzlers here in Spokane, actually our sales are up over the previous year,” Card said. “This is a company deal and it’s down in California, and it can stay there.”

Card said it’s important to understand that there’s a difference between company-owned stores and franchises. Of the more than 600 Sizzler restaurants, only about one-third are company owned.

Sizzler said it expects to take a charge of $108.9 million, or $3.92 a share, for the closings and reorganization. The company said the charge will contribute to it reporting a loss for the fiscal year ended April 29.

“Sizzler is now much better positioned for continuing profitability and growth into the next century,” Kevin Perkins, Sizzler’s president and chief executive officer, said in a prepared statement.

Perkins said the company expects to focus on the Asia Pacific region, as well as Australia, where it operates both Sizzler and KFC restaurants.

The Sizzler filing is a bit unusual because the company is in fairly healthy financial shape.

In fiscal 1995, Sizzler earned $6.7 million on revenue of $462.2 million. Systemwide sales, which includes all sales of franchisees, totaled $937.7 million.

, DataTimes