Five U.S. restaurant companies have recently found suitors to acquire them out of bankruptcy, in contrast to the host of troubled retailers failing to attract buyers amid the COVID-19 pandemic, the Wall Street Journal reported. Chains that own casual-dining brands including Krystal, Logan’s Roadhouse, Gordon Biersch, Bar Louie, Brio, Bravo and the U.S. division of Le Pain Quotidien have all found takers for their bricks-and mortar locations after filing for bankruptcy protection this year. The buyers are betting that restaurants will rebound after the pandemic. That view doesn’t extend to retailers that have struggled to adapt to changing consumer preferences; the growth of e-commerce, particularly Amazon.com Inc.; and the obsolescence of malls. None of the major bricks-and-mortar retailers that filed for bankruptcy in 2020 looking for a buyer has been able to sell its stores, according to BankruptcyData.com. The recent wave of retail bankruptcies has come as government-mandated coronavirus closures tipped struggling companies over the edge. Restaurants were ordered to close their dining rooms, though many have continued to serve customers through drive-throughs, carryout, curbside pickup and delivery. “A path to success for restaurants is clearer to an investor than one for retailers,” said Stephanie Lieb, a bankruptcy lawyer at Florida-based Trenam Law. One reason restaurants are often viewed as more attractive is their franchising models, which require less of a capital investment from the chain’s owner, said Aaron Cheris, a partner at Bain & Co. and head of its Americas retail practice.
