The Albuquerque Journal recently covered the bankruptcy filing of Zio’s Italian Kitchen. Zio’s announced that its Albuquerque restaurant will be closing in conjunction with its recent Chapter 11 bankruptcy filing, which occurred less than a month ago.
According to the Journal, Texas-based Zio’s cited these reasons for its financial challenges:
· Weakness in the casual dining market
· Increased competition from “fast-casual restaurants”
· Decreased sales because it’s restaurants are in areas impacted by falling oil and gas prices
Just last week, Nation’s Restaurant News blogged about the current flurry of restaurants filing for bankruptcy, noting that restaurants are “capital-intensive businesses operating in a saturated industry that caters to a fickle consumer.” Restaurateurs often need to rely on debt to expand and have little in capital assets because they usually lease premises, rather than buy real estate. Profitability and survival is directly related to sales volume and if sales drop, financial stress often follows.
While Zio’s is a larger chain, smaller, local eating establishments may face similar pressures. When a New Mexico restaurant owner feels the pinch, a lawyer should be consulted to understand all the legal options for relief. The answer may be bankruptcy – either a liquidation or a reorganization – or some other debt-relief approach such as refinancing of debt or renegotiating with creditors. An attorney can educate the business owner about the pros and cons of available options.
In Albuquerque and throughout New Mexico, the law firm of Giddens & Gatton Law,amp; Jacobus has bankruptcy attorneys who offer expert handling of Chapter 7, Chapter 11, Chapter 12 and Chapter 13 bankruptcy cases and can specifically provide advice as to bankruptcy and its alternatives.
We represent many debtors and creditors in Albuquerque, Santa Fe, Las Cruces, Taos, Raton, Farmington, Gallup, Grants, Roswell, Los Lunas, Placitas, Belen and the rest of New Mexico. Contact Giddens & Gatton Law,amp; P.C., at (505) 273-3720 to set up an appointment or visit the firm’s website at giddenslaw.com. Giddens & Gatton Law,amp; P.C., is located at 10400 Academy Road N.E., Suite 350 in Albuquerque, New Mexico.