RM Restaurant Holding Corp., owner of the Mexican restaurant chains Chevys, El Torito and Acapulco, sought bankruptcy protection from creditors saying the U.S. economic slowdown led to a decline in sales.
The Cypress-based company, with 178 restaurants, listed assets of $272.2 million and debt of $249.9 million in a filing in U.S. Bankruptcy Court in Wilmington, Del. Sun Capital Partners Inc. and Farallon Capital Management own stakes in the company, according to court papers.
"Coinciding with the broader economic downturn in the U.S." the restaurants "have experienced fewer dining guests," Chief Financial Officer Richard P. Dutkiewicz, representing affiliates including Real Mex Restaurants Inc., said in a filing. Sales fell to $478 million in 2010 from about $553 million in 2008, he said.
A $34.6 million loan represents the largest unsecured claim against the company, according to court papers. Wilmington Trust NA is the administrative agent for the loan. Blue Cross of California is listed as the largest trade creditor, with a $1.1 million claim.
RM Restaurant has restaurants in a dozen states from New York to California, as well as Japan and Turkey.