The leaders of restaurant chain LRI Holdings, the parent of Logan's Roadhouse, say they are close to amending their $30 million revolving credit line and, as a result, need a few days grace from the Securities and Exchange Commission to file the financial statements for the fiscal quarter that ended in late October. The company's revolving credit line deal with JPMorgan Chase and Credit Suisse — as of August, $3.5 million of the $30 million was being used for letters of credit — is scheduled to expire next October.
A new CEO is on board at Logan's Roadhouse, but things aren't looking any brighter just yet. The Nashville-based restaurant company has asked the Securities and Exchange Commission for a two-week grace period to file its annual report. The company's leadership team needs extra time to re-evaluate its goodwill and intangible assets, a move that is likely to produce a "significant change in results of operations."
A year ago, the company said it had taken a $91 million charge to account for shrinking traffic and pared-back growth plans. Since then, the company's business trends haven't improved, with same-stores sales falling more than 3 percent and total traffic sliding almost 7 percent during the third quarter.
SEE ALSO: Logan's names new CEO from a month ago
Gerard Lewis, the newly installed interim president and CEO of Logan's Roadhouse's parent company, will be paid the same annual salary as his predecessor, Mike Andres. That's the main element in an agreement Lewis and the company came to terms on last week. The restaurant industry veteran, who had been consulting with Logan's since early this year, also is in line to receive a (prorated) $650,000 bonus provided the company meets certain goals — which will be detailed in an addendum to the company's upcoming annual report.
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