Sizzler USA filed for bankruptcy yesterday, the latest casual dining chain to fall victim to the effects of the COVID-19 pandemic, WSJ Pro Bankruptcy reported. One of the earliest affordable steakhouses, Sizzler USA was a cultural staple for decades. It experienced its heyday in the late 1970s and early ’80s but its chain of largely franchised operations shrank in recent years. The company said that its franchised locations, numbering more than 90, aren’t affected by the bankruptcy filing. Sizzler added that it plans to keep the 14 company-owned locations operating during the bankruptcy process, which is aimed at renegotiating leases. Sizzler President Chris Perkins blamed the bankruptcy filing on temporary restaurant closures due to the pandemic and landlords’ unwillingness to abate rents despite the company’s financial distress. Founded in 1958, the Mission Viejo, Calif., company mainly has locations in the western U.S. It later expanded to include seafood and salad bars, chasing newer rivals like Bonanza and Ponderosa steakhouses. In papers filed in the U.S. Bankruptcy Court for the Northern District of California, Sizzlers estimated both its assets and debts at less than $10 million. Yesterday’s bankruptcy filing was the second for Sizzler, which sought chapter 11 protection in 1996.
