Hot Dog On A Stick Stuck In Chapter 11

by The Editors on February 5, 2014

hot_dog_stick_logoCarlsbad’s own Hot Dog On A Stick has filed for Chapter 11 Bankruptcy protection in US Bankruptcy court according to a release from the company. The restaurant chain has 93 locations and according to CEO Dan Smith, many of the leases on those locations were signed at the wrong time.

“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 company says they will continue operations as usual during the restructuring so don’t worry about missing out on that dog or lemonade. For the official word from Hot Dog On A Stick, follow the jump.


Hot Dog on a Stick Files Chapter 11 Bankruptcy Petition; To Reorganize, Restructure, and Seek New Leases
February 03, 2014 03:30 PM Eastern Standard Time
CARLSBAD, Calif.–HDOS Enterprises, the owner of the popular 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.

“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”

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. In addition to these continuing efforts, 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 said.

About Hot Dog On A Stick

Established in 1946 in Southern California, Hot Dog On A Stick is known for its fair-inspired menu of corn dogs, lemonades, and a sampling of other menu items such as cheese on a stick, hot dog in a bun, fries, and funnel cake sticks. HDOS is owned by its employees. For more information, see: http://www.hotdogonastick.comt proceedings.

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