Personally I haven't eaten there in years as it was just so much like other big chains like Olive Garden. Zio’s Restaurant Files for Bankruptcy
The casual-dining chain was hurt by the oil bust Updated Sept. 7, 2016 5:50 p.m. ET
The owner of Zio’s Italian Kitchen restaurant chain filed for
bankruptcy Wednesday, joining a wave of casual eateries struggling as
consumer preferences shift to cheaper, faster alternatives. From the WSJ last week is this article. Dallas-based
Zio’s Restaurant Co., which filed for chapter 11 bankruptcy in U.S.
Bankruptcy Court in San Antonio, operates 15 restaurants located
primarily in the Southwest and employs 875 employees. Zio’s is
shuttering five of its restaurants and is “evaluating” the remaining
locations for closure as well, according to court papers. Like
other casual eateries, Zio’s has suffered in recent years as
cash-strapped diners cut back on eating out. Those financial woes have
been exacerbated by Zio’s presence in an area that has been buffeted by
the distress in the oil and natural gas industry, said David W. Parham, Zio’s bankruptcy lawyer. The
restaurant chain also embarked on an expansion, growing to 21 outlets,
as oil and gas prices plummeted. The bust contributed to a slowdown in
the casual-dining industry in the region. Despite cutting costs
and closing some locations, Zio’s management was “unable to continue to
grow the Zio’s concept and revenues,” Mr. Parham said. Zio’s
eateries are managed by FMP SA Management Group, an affiliate of Food
Management Partners Inc., based in Hollywood Park, Texas. Food
Management’s three co-founders are the majority owners of Zio’s
Restaurant Co., according to court papers. They also signed off on the
chapter 11 petition. Representatives for Food Management Partners and Zio’s weren’t immediately available for comment.FMP also manages Buffets Restaurants, a Texas-based chain that filed
for bankruptcy in March less than a year after the company merged with
Alamo Ovation LLC, another affiliate of Food Management Partners. At the
time of its filing, Buffets operated more than 150 restaurants
employing 9,000 people under the Old Country Buffet, HomeTown Buffet,
Fire Mountain and Ryan’s brands, plus another 10 steakhouse restaurants
under the Tahoe Joe’s brand. Zio’s
says it has no secured debt and $2.3 million in unsecured trade debt
and other operating expenses. The company listed FMP as its largest
unsecured creditor with a claim of more than $834,000. Mr. Parham’s law firm, Akerman LLP, is handling the chapter 11 case. The case number is 16-52041. Judge Ronald B. King has been assigned the case. 4951