The second-biggest operator of Applebee’s restaurants said it filed for bankruptcy this week partly to protect its franchise rights in two states, but while it is under chapter 11 protection it also plans to negotiate new leases and contracts, WSJ Pro Bankruptcy reported. Atlanta-based RMH Franchise Holdings Inc., owner of 159 Applebee’s Neighborhood Grill & Bar restaurants in 15 states, sought chapter 11 protection on Tuesday. The franchisee’s restaurants represent slightly less than 10 percent of all Applebee’s locations. “Significant challenges encountered by the Applebee’s brand generally, and specific managerial decisions made on behalf of it by its franchisor, Applebee’s International Inc.,” have hurt the franchisee’s operations and left it “facing near-term liquidity issues,” RMH Chief Financial Officer Mitchell Blocher said in a filing Wednesday in U.S. Bankruptcy Court in Wilmington, Del. Over the past year, the franchisee has been negotiating new lease terms, closing poor-performing locations, and trying to reduce corporate and back-office costs, he said.
