Max & Erma's restaurant chain files for bankruptcy
Midwest restaurant chain Max & Erma's filed for bankruptcy protection this month in a move that gives insight into the difficulties facing casual dining chains.
The Columbus-based company operates 106 restaurants, including 79 that are company-owned. One location is in Ann Arbor on East Eisenhower north of Briarwood Mall.
The bankruptcy, according to reports, is a Chapter 11 filing, so its owners - an investment group that took the chain private upon purchasing it in 2008 - want to reorganize, not liquidate.
The owners, G&R Acquisitions of Pittsburgh, Pa., owe about $10 million to various creditors, in addition to other debts. G&R also owns the Damon's chain, which in Ann Arbor is located on Boardwalk about a half-mile from Max & Erma's.
Reports indicate the chain struggled in recent years after expanding its menu from its core burger offerings.
But competition from other casual dining chains - and their struggle to differentiate themselves - also play into the difficulties.
In Ann Arbor, those chains include Applebee's - which recently stalled plans to build another local restaurant on Zeeb Road in Scio Township - along with Chili's and Olive Garden.
The local restaurant scene has been experiencing both revenue challenges due to the economy and a wave of new openings due to the historic strength of the Ann Arbor market.
Mike Gibbons, an owner of Ann Arbor's Mainstreet Ventures and chairman of the board of the National Restaurant Association, recently told AnnArbor.com that existing restaurants have been feeling the pinch of the current economic recession.
"We're flat, and I don't remember saying that before," he said. "There are fewer people dining ... and there are more restaurants, so more places to choose from."
Ann Arbor will have to wait to see whether Max & Erma's remains an option. The chain expects to emerge from bankruptcy with fewer restaurants. Today, it operates 15 Max & Erma's in Michigan, 13 in the metro Detroit area.
Comments
David Briegel
Sun, Nov 1, 2009 : 9:23 a.m.
Wow, The Red Coat Tavern is wonderful! Casey's, Sidetrack, Jolly Pumpkin, are all excellent. Not one vote for Knights who also supply the beef for many of these! Casey's and Jolly Pumpkin are Non Smoking, a huge plus! You can actually smell and taste your food!
Tom Teague
Wed, Oct 28, 2009 : 9:38 p.m.
The chain vs local distinction is purely academic to the restaurant's employees and suppliers who would feel the pain of Max and Erma's closing. This annarbor.com article illuminates just how much local disruption can be caused by a chain restaurant's closing: http://www.annarbor.com/business-review/employees-of-former-ann-arbor-big-boys-say-closings-were-devastating/
Patrick Haggood
Wed, Oct 28, 2009 : 10:55 a.m.
@TopCat - there's another recommendation for Casey's; they're up the street from me so maybe I'll walk there this weekend. After enjoying the burgers for years at "Joey's Meat Cutter's Inn" in Detroit's Eastern Market, I've been looking for something local that tastes as good (and I've tried many of the other places mentioned in this thread and have been sorely underwhelmed).
Hans Masing
Wed, Oct 28, 2009 : 10:16 a.m.
Nobody wants to see Ann Arbor businesses fail, ever. However, in the face of the current economy this is yet another good reason to shop locally. There are TONS of *great* **LOCALLY OWNED** restaurants around town that need your business just as much or more than the large chains. Same goes for every other type of business.
mercury69
Tue, Oct 27, 2009 : 8:15 p.m.
Why does anyone want to see a business fail in Ann Arbor? Didn't the city take enough of a tax hit with Pfizer? What the hell?
huh7891
Tue, Oct 27, 2009 : 7:17 p.m.
Want a good burger go to The Dockside near Torch Lake...head north
Chrysta Cherrie
Tue, Oct 27, 2009 : 5:36 p.m.
I've heard good things about the burgers at Sidetrack and Haab's in Ypsi, as well as Stivers in Chelsea and Dan's in Saline, but as a vegetarian am not interested in verifying these claims (though I am a big Sidetrack fan). Anyone wanna confirm/deny?
treetowncartel
Tue, Oct 27, 2009 : 4:29 p.m.
Top Cat, I would have to say Blimpy Burger is the best overall. The new Bagger Daves in the Collonade is pretty good too. there are a couple of other spots, but I'm not going to share because I don't want my wait in line getting any longer. For the best burger in the detroit metro area try the piedmontese beef burger at Redcoat Tavern in Royal Oak on Woodward.
Jessica Webster
Tue, Oct 27, 2009 : 3:49 p.m.
Top Cat - Casey's burgers are awesome. I'm also a big fan of the grass-fed burgers at Jolly Pumpkin and their truffle fries.
John Galt
Tue, Oct 27, 2009 : 2:14 p.m.
I think we will see many more business (chains or otherwise) shut downs in the next few years. The build-out of stores and restaurants in stripmalls and suburbs was way too much for the reduced incomes and spending that are likely to be imposed in the short-to-mid-term future in this country. Not enough dollars being spent to go around. Some recent examples of corporations going into BK: (Circuit City, Mervyns, Eddie Bauer, Nortel Networks, Goody's, Monoco Coach, Fleetwood Enterprises, Greektown Holdings, KB Toys, Lillian Vernon, Linens N Things, Mrs. Fields Brands, Sharper Image, Wickes Furniture, Whitehall Jewelers,). Not to mention Washington Mutual, Lehman, Bear Stearns, AIG, GM and Chrysler. A local company in trouble right now is Borders (the recent price war Walmart, Target and Amazon are having on the upcoming bestsellers will make it worse). Tough Times out there...
treetowncartel
Tue, Oct 27, 2009 : 1:12 p.m.
Those burgers are not that great, much better fare in town. since it is just reorganization it will probably still be around at the end of the proceedings. And as anyone in the restaurant business knows, it takes a large fortune to make a small fortune.
whodat
Tue, Oct 27, 2009 : 12:54 p.m.
Can't say I'm sad to see a chain restaurant filing for bankruptcy. For those of you who will miss it, assuming the one in AA were to close, just dive up Eisenhower and hit the Friday's off Lohr Road.
jeremy
Tue, Oct 27, 2009 : 12:54 p.m.
marvin, i agree. I grew up there and when we go back home to visit thats the only place i want to eat at. max and erma's burgers are the best. I do hope they keep the one here open though. I can think of a few other places i would rather see shut down.
Marvin Face
Tue, Oct 27, 2009 : 12:14 p.m.
The original Max and Erma's in German Village in Columbus is great. They should have stopped there.
81wolverine
Tue, Oct 27, 2009 : 10:50 a.m.
That's too bad. I hope the Ann Arbor restaurant stays open. It's been a favorite of my family for years. We have eaten there many times and really like the warm atmosphere, good food, and really neat Michigan sports memorabilia.