Spectrum Restaurant Group Inc

A Newport Beach-based company that owns more than a dozen casual and fine-dining restaurants has filed for bankruptcy protection, citing a weak economy and at least $10 million in debt. Spectrum Restaurant Group, Inc. and its subsidiaries filed for reorganization under Chapter 11 in Orange County, saying it had tried to aggressively cut costs to return to profitability. The company operates restaurants, mostly in Southern California, under the names Prego, Guaymas and MacArthur Park.

A Newport Beach-based company that owns more than a dozen casual and fine-dining restaurants has filed for bankruptcy protection, citing a weak economy and at least $10 million in debt. Spectrum Restaurant Group, Inc. and its subsidiaries filed for reorganization under Chapter 11 in Orange County, saying it had tried to aggressively cut costs to return to profitability. The company operates restaurants, mostly in Southern California, under the names Prego, Guaymas and MacArthur Park.

Cash-flow problems, compounded by a dispute over the sale of several restaurants, have pushed the owner of the Spoons Bar & Grill and National Sports Grill chains to file for protection from creditors in U.S. Bankruptcy Court for the second time in three years Tuesday. Eateries operated by Spectrum Restaurant Group Inc. of Irvine have seen sales slow because of the effects of high energy costs on its customers, said Anwar Soliman, Spectrum's owner and chief executive.

Longevity isn't a hallmark of the restaurant trade. But even some veteran industry executives are startled by a recent surfeit of bankruptcy filings. Six California-based restaurant companies, operating some well-known chains in 450 locations, have filed for Chapter 11 bankruptcy protection in recent months. The casualties include Mexican eateries Chevys Inc.; Chi-Chi's Inc.; Hamlet Inc., operator of the Hamburger Hamlet chain; and rotisserie and sandwich vendor Koo Koo Roo Inc.