Local Denny’s owner files for Chapter 11 bankruptcy

November 12, 2023 by No Comments

A franchise operator managing multiple Denny’s locations across states has plans to shut down one of its three outlets in West Michigan. This move comes in the wake of a recent Chapter 11 bankruptcy filing.

The filing, submitted on November 1 to the U.S. Bankruptcy Court for the Western District of Michigan, was made by Thomas Pilbeam, Sr., the principal owner of Denn-Ohio LLC. The decision to file for bankruptcy was influenced by the passing of his business partner, Jack Thompson, and economic difficulties stemming from the COVID-19 pandemic.

Denn-Ohio oversees 10 Denny’s restaurants, with three situated in West Michigan in the cities of Grand Rapids, Wyoming, and Kalamazoo. The company also operates five locations in Ohio, located in Toledo, Perrysburg, Columbus, Jeffersonville, and Berkshire, as well as one in Elizabethtown, Kentucky. Currently, the company employs 85 full-time and 195 part-time workers.

The bankruptcy filing was conducted under Subchapter V of the U.S. Bankruptcy Code, a provision introduced in early 2020 to assist small businesses by streamlining the Chapter 11 filing process, making it less costly and time-consuming.

Earlier this year, Denn-Ohio was in the news following a tragic incident at its Elizabethtown, Kentucky, location, where a sign collapse led to two fatalities. According to the bankruptcy documents, two wrongful death lawsuits and a personal injury claim related to this incident are still pending.

Steve Bylenga, a co-founder of Grand Rapids-based law firm CBH Attorneys and Counselors PLLC and Pilbeam’s attorney, was unavailable for comment on the matter.

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