Shoney's Inc. (SHN) said late Tuesday that it has retained Bank of America Securities to find a way to reduce the restaurant company's debt and interest expense.

Among the alternatives it will consider are a refinancing, recapitalization or a restructuring of its balance sheet.

Shoney's has been attempting to stabilize its operations and to stem declines in same-store sales. In the year ended October 31, 1999, sales at restaurants open at least a year slipped 1.0%. Shoney's Restaurants fell 3.6%, Captain D's Restaurants rose 2.6% and Pargo's fell 2.7%. The company announced last month that it was selling its Pargo's stores to Slades Inc.

In December, it said that for the year, Shoney's lost $28.8 million on revenue of $999.4 million. It paid interest expense of $42.2 million on long-term debt of $358 million and current liabilities of $125.2 million.

Shoney's shares settled Tuesday at $1.06.

In recent weeks, the company has restructured its Shoney's unit, seen the president of that unit quit, sold eight Shoney's stores and put its advertising account out for bid.