Fast-Casual Steakhouse Pioneer Sizzler USA Files for Bankruptcy

A popular hangout for decades, Sizzler chain joins the roster of pandemic casualties

Sizzler USA filed for bankruptcy Monday, the latest casual dining chain to fall victim to the effects of the Covid-19 pandemic. One of the earliest affordable steakhouses, Sizzler USA was a cultural staple for decades. It experienced its heyday in the late 1970s and early ’80s but its chain of largely franchised operations shrank in recent years.

The company said its franchised locations, numbering more than 90, aren’t affected by the bankruptcy filing.

Sizzler added it plans to keep the 14 companyowned locations operating during the bankruptcy process, which is aimed at renegotiating leases.

Sizzler President Chris Perkins blamed the bankruptcy filing on temporary restaurant closures due to the pandemic and landlords’ unwillingness to abate rents despite the company’s financial distress.

Founded in 1958, the Mission Viejo, Calif., company mainly has locations in the western U.S. It later expanded to include seafood and salad bars, chasing newer rivals like Bonanza and Ponderosa steakhouses.

Restaurants have been hard hit by the coronavirus pandemic, and those with features such as salad bars have been a particular challenge for dining chains, which have struggled to attract business under Covid-19 restrictions.

In papers filed in the U.S. Bankruptcy Court for the Northern District of California, Sizzlers estimated both its assets and debts at less than $10 million.

Monday’s bankruptcy filing was the second for Sizzler, which sought chapter 11 protection in 1996.

Sizzler USA took its current shape in a 2011 management buyout that acquired the U.S. operations from Australian private-equity company Pacific Equity Partners. At the time, the company had 178 locations in the U.S.

The bankruptcy authorization papers were signed by Kevin Perkins, who was part of the management buyout.

Sheppard, Mullin, Richter & Hampton LLP is advising Sizzler. The bankruptcy case number is 20-30748.