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I would think that some restaurants once in bankruptcy should probably not bother to come out. If I were the owner of a failed bankruptcy chain saddled with debt (though much of it probably relieved or restructured in bankruptcy) I would strongly consider liquidating everything. It’s a tough market out there and with a Chili’s, Applebees and Outback Steakhouse in every mall who really another Americana chain restaurant?

The fundamentals of running a chain restaurant seem very dangerous to me. You need a ton of debt to open new stores and now is not the time to be taking on high debt loads. If I were a chain store owner I would be cutting back underperforming stores, slashing overhead and focusing intensely on the profitable stores in case this downturn takes a couple years to come out of.

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