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HomeTown Buffet, Affiliated Dining Chains File for Bankruptcy

Submitted by jhartgen@abi.org on

The owner of HomeTown Buffet and other buffet dining chains filed for chapter 11 protection, blaming a lawsuit that was not disclosed when its current owner bought the businesses in August, Reuters reported yesterday. Buffets LLC, an affiliate of Food Management Partners, in August paid an undisclosed amount for the chains Old Country Buffet, Ryan's, Fire Mountain and Tahoe Joe's, in addition to HomeTown, according to Food Management Partners' website. Those chains, which operate 150 restaurants, were part of the bankruptcy filing yesterday, according to court documents. The firm that sold the restaurant chains in August did not disclose a pending lawsuit, which resulted in an $11.4 million judgment, according to a statement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.