The restaurant chain Max & Erma's Inc. has filed for Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court in the Western District of Pennsylvania.
A Pittsburgh attorney representing the company in the filing said the chain's 106 restaurants -- 79 company-owned and 27 franchises -- would continue operating normally. "It's business as usual," said Robert O. Lampl.
The Columbus, Ohio, chain was acquired in 2008 by Pittsburgh-based G&R Acquisitions, led by Gary Reinert Sr. The same company also bought the Damon's Grill restaurant operation.
The Max & Erma's chain lists assets between $1 million and $10 million, as well as liabilities in the same range, according to court documents filed Friday. The company estimated it had between 200 and 999 creditors, and it estimated that there would be funds available for distribution to unsecured creditors.
"We're not going out of business," said Mr. Lampl, who indicated the filing was mainly a result of money owed to key lender, National City. He said there were no plans to close any restaurants.
Under Chapter 11 bankruptcy, a company works with the court to satisfy creditors and to try to emerge from the process in a stronger financial position.
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