Carlsbad’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.
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