Hometown Buffet’s parent company files for bankruptcy

Hometown Buffet’s parent company filed bankruptcy Monday, and the Merced location was closed for “asset inventory” as employees loaded moving trucks with restaurant equipment.

Buffets LLC filed bankruptcy in an effort to restructure the company, which operates Hometown Buffet as well as Ryan’s, Fire Mountain, Country Buffet, Old Country Buffet and Tahoe Joe’s Famous Steakhouse, according to a statement.

Kim Miller, president of the company that does marketing for Buffets, said the Merced restaurant would be “impacted,” but did not comment on whether it is closing.

U-Haul moving trucks and vans were in the parking lot in the Merced Mall on Olive Avenue on Monday as employees loaded up the restaurant’s ice cream machine and busing trolleys, among other items.

Several couples parked their cars and walked up to the door ready to enjoy a buffet meal, only to be turned away.

Jesus Briceno and his wife, Berta, sometimes dined at Hometown Buffet twice in one week. The couple, married for 55 years, were disappointed to hear about the possibility of losing a favorite eatery.

“We like to close down our kitchen two or three times a week,” Briceno said about cooking at home. “I like the food here better than the food in my own kitchen.”

Food Management Partners bought Buffets LLC in August. A statement from Peter Donbavand, vice president for business development at Food Management, said the company is filing bankruptcy for liabilities that were unknown to Food Management during negotiations.

After Food Management acquired Buffets, an $11.37 million judgment against Buffets was awarded to plaintiffs in October. The case stemmed from a 2010 incident that Buffets said did not happen at a property operated by the parent company. Buffets is attempting to overturn the decision.

Donbavand also said several contract debts were past due for Buffets and had to be addressed to continue restaurant operations.

“All of these issues are being reviewed by financial and legal professionals,” Donbavand said in the statement. “However, we are completely committed to the continued operation of these brands, and this is a necessary step for us to take to make this happen.”

Several Hometown Buffet locations in the state are reported to have closed, and the chain faces a state investigation on allegations it didn’t give employees proper notice of the closures, various media outlets have reported.

The trouble for Merced’s Hometown Buffet follows uncertainty about another Merced Mall restaurant, the Sweet River Grill & Bar.

Nanette Villegas, the marketing director for the mall, said the owner of Sweet River has decided to retire.

Both Sweet River and Hometown have been fixtures at the mall for about 20 years.

Sweet River opened its first location at the mall in 1983, according to its website. Sweet River closed its doors for good on Sunday.

Villegas said closures are always a part of growing pains.

“When bringing new places in, they need a place to go,” she said. “It’s good for transition. It looks worse before it gets better, but you’ve got to look at the big picture.”

The Merced Mall currently has about five vacancies and is home to more than 70 stores, Villegas said.

This story was originally published March 7, 2016 at 5:47 PM with the headline "Hometown Buffet’s parent company files for bankruptcy."