Applebee’ s closing at the end of the month after six months of running a struggling business has put the spotlight on the struggling restaurant chain.
The Applebees, a chain of small-scale restaurants in the US, announced its closure on its website, and said the restaurant would close on October 26.
“It is with great sadness that we announce the closure of our business at the beginning of the next fiscal year,” the company said.
“We will be focusing on our business operations, expanding our product offerings and focusing on the health and wellness of our employees.”
We sincerely thank you for your continued support over the past six years.
“The company’s owner, Applebee’, s former CEO Tim Cook, has said the chain has lost around $10 million in the past year, and that its profits have fallen more than 60 per cent from 2016.”
The loss of a small business is devastating for the employees, the communities in which they operate and the surrounding communities,” Cook said.
The company said it would be opening a new location in New York and opening new restaurants in Canada and South Africa, where Cook had previously been based.
Applebee’s said that the company was in discussions with some of the other local chains in the area and that “many of our other restaurants in other cities have been able to recover from this.”
However, the Applebee chain has faced financial troubles before.
In 2016, the chain had a $3.5 million cash shortfall and had to make debt payments to buy back the shares of its current owner.
In May 2017, the company reported that it had a debt load of $13 million, more than double its revenue of $2.8 million.
Applebee’s stock has fallen by around 80 per cent since then, with Cook recently announcing that he was leaving the company.