After failed bankruptcy filings, iconic restaurant tries comeback
The once-national chain's owner tried (and failed) to file for Chapter 11 bankruptcy protection twice.
When a company files for bankruptcy, it gets a chance to negotiate with its creditors, vendors, and landlords. Sometimes it can gain concessions and find new money that allow it to keep operating.
In many cases, the various businesses and people a company owes money to see value in its survival. Maybe the bankrupt operation ran out of money because of a once-in-a-lifetime situation like the Covid pandemic or some other catastrophic event.
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Many vendors and landlords see the value in keeping a once-good customer afloat, even if it means forgiving some debt or taking equity in return for money owed.
