Ryan’s Buffet located on South Cherry Ln. in White Settlement closed its doors without notice to employees and patrons late last week. The marquee at the end of the parking lot read “Closed” and a sign on the door said, “This location has permanently closed. We apologize for any inconvenience this may cause, and we sincerely appreciate your patronage over the years.”
The company sited a low performing location as the reason for closure.
“We were just as surprised about the closing as everyone else,” said Economic Development Corporation Director of White Settlement, Jim Ryan.
A spokesperson at Buffets, Inc. stated that the company announced a restructuring agreement that was reached with lenders eliminating $245 million of outstanding debt. The Company anticipates completing the restructuring process and exiting Chapter 11 within approximately six months.
As part of the restructuring plan, the Company promptly closed 81 underperforming restaurants, representing approximately 16 percent of its nearly 500 restaurants nationally.
“The decision to close these underperforming restaurants, though difficult, resulted from a comprehensive, store-by-store analysis of financial performance, occupancy costs, market conditions and the long-term strategy of our reorganized restaurant portfolio,” said Mike Andrews, CEO of Buffets.
Ironically, Luby’s Cafeteria closed its doors also during the month of January in 2008. The city has had no interest in either of the restaurant properties on Cherry Lane so far.
‘’One concern we have regarding the EDC and the city of White Settlement is that the businesses have settled around us,” said Economic Development Corporation Director Jim Ryan. “We need to build our jobs and our people to attract retail businesses and restaurants inside our city.”
Employees will have the opportunity to apply at other restaurants witing the company.
“We deeply regret the impact on our dedicated associates in those restaurants that will be closed. The closings in no way reflect their hard work and efforts, and we thank all of our team members for their commitment to delivering the quality, service and value that have been trademarks of our Buffets brands for many years,” said Mr. Andrews.
