Bankruptcy line forms here

Two weeks after Dallas-based Consolidated Restaurant Operations (CRO) pulled the plug on an agreement to acquire it, Chevys Inc. filed a voluntary petition to reorganize under Chapter 11 of the U.S. Bankruptcy Code. The Emeryville, Calif.-based parent of the Chevys Fresh Mex, Fuzio Universal Pasta

Although John Harkey, CEO of CRO, pointed to uncertainties in California's "political and economic climate" as a reason for terminating the acquisition, Chevys said its filing was caused by problems with 37-unit Rio Bravo, which it acquired from Applebee's International in 1999. The chain has performed poorly and is being closed, Chevys President and CEO Ron Maccarone said in a statement.

The filing by another Emeryville, Calif., company, Constellation Concepts, is the result of an "over-leveraged debt structure." Constellation operates the Alcatraz Brewing, California Cafe and Napa Valley Grille chains and stand-alone restaurants Cafe Del Rey, Horizons and Ondine.

The 128-unit Chi-Chi's Inc., 29-unit Koo Koo Roo Inc., and 14-unit The Hamlet Group, operating subsidiaries of Irvine, Calif.-based Prandium Inc., also filed for bankruptcy protection in October. In conjunction with its filing, Koo Koo Roo is being acquired by Fuddruckers Inc. Prandium itself emerged from Chapter 11 in July 2002.

Newport Beach, Calif.-based Spectrum Restaurant Group filed for reorganization in August. It owns the Crabby Bob's, Grandy's, National Sports Grill and Spoons Bar & Grill chains as well as a number of stand-alone restaurants in California.