As Fortune magazine reported at the time:

“The parent company of Ground Round had run out of money, and it was ceasing operations immediately. While bankruptcies by nature are unpleasant affairs, this one quickly turned ugly. The announcement came right before the dinner rush on a Friday, when store managers were ordered to tell diners to finish eating and pay their tabs. (Some were sent home with half-eaten meals in takeout containers.)

"More than 3000 employees -- some of whom had been with the restaurants for over a decade -- were let go without severance, and their final paychecks bounced. A few angry workers broke plates and windows, and stole steaks and liquor. In at least one instance employees reportedly kept the restaurants open after they were ordered to close and pocketed the proceeds. The company's subsequent bankruptcy filing showed that unsecured creditors, including food and product purveyors, were owed between $10 million and $50 million. CEO Tom Russo was allegedly threatened by former workers, and was rumored to have carried a gun with him to the office.”

• STOCKS
• RELATED ARTICLES
• ALSO BY...

SEARCH:

Quote, Unquote: Biased Credit Rating Agencies?
Airlines: People Won't Fly, So We'll Raise Fees
Trading Radar: GDP Highlights a Thin Week
California Oversteps with HDTV Regulations
Goldman, Beaten But Unbowed

Quote, Unquote: Biased Credit Rating Agencies?
Low Inflation? Not in Prison
Rags to Riches CEOs: Larry Ellison
Rags to Riches CEOs: Ken Lewis
Quote, Unquote: The Heavenly Work of Bankers

Yet even fires, bankruptcy, stolen steaks, and pilfered liquor couldn’t keep the Ground Round down. That July, 48 Ground Round franchisees successfully acquired the majority of its assets, forming the Independent Owners Cooperative, LLC. Skeptics abounded, claiming franchisee ownership of the parent company would be equivalent to the “inmates running the asylum.”

It remains to be seen where the Ground Round will go from here. There are currently more than 48 Ground Rounds in 19 states, and with deep-fried cheesecake on the dessert menu, it’s almost hard to imagine why there'd ever be an empty seat in the house.

Is it possible that this cardiac bunker buster could be the next taste sensation and even draw visitors to the West Chester, Pennsylvania location? According to published accounts, West Chester’s Ground Round is “haunted by a girl [who] choked to death inside of it. Now there are reports of objects being moved and the lights going on and off mysteriously.”

Fortunately, the dead don’t have to worry about cholesterol.