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HDOS Enterprises, parent company of Hot Dog on a Stick restaurants, has filed a Chapter 11 bankruptcy petition in U.S. Bankruptcy Court, Central District of California, Los Angeles Division. The company is seeking relief so it can reorganize and restructure its business, according to a news release.
The company currently operates 93 locations and plans to continue business as usual during the bankruptcy proceedings.
Significant reductions to its corporate workforce and expenses, initiatives to grow top-line sales, and numerous programs to achieve savings from supply chain to store level have been undertaken over the past year, the release said. In addition, HDOS will be working closely with its landlords to review and renegotiate leases, the vast majority of which were written at the height of the real estate bubble.
"Like many mall-based businesses, HDOS signed some very expensive leases during the booming economy of the mid-2000s," said Dan Smith, CEO. "In addition, declining mall foot traffic over the past several years has had a negative impact on sales at most company locations. We've been pursuing new leases in all locations and the Chapter 11 filing will allow us to do so in a more effective manner. The mall business is built around the relationships and partnerships between tenant and landlord. We want to be in malls where the relationship is positive and the partnership is mutually beneficial."
"The Hot Dog on a Stick brand has been strong and iconic for many years. Our initiatives, coupled with the cooperation of our partners, will allow us to emerge from these bankruptcy proceedings in a position to thrive well into the future," Smith added.
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