Avado Brands files for Chapter 11 protection

<p>After struggling for years, Avado Brands Inc. has filed for Chapter 11 bankruptcy protection.</p><p>Company officials said Wednesday that Avado, which operates Don Pablos Mexican Kitchen and Hops Grillhouse & Brewery, will continue to operate its restaurants while it restructures.</p><p>This is an important step for Avado Brands, and is part of a process that will result in a stronger company, interim chief executive officer Kevin Leary said in a statement Wednesday.</p><p>Many of the chains that once were in the Avado portfolio _ Applebees, McCormick & Schmicks and Canyon Cafe _ have been sold.</p><p>Last July, the company received a default notice from the holders of $66.1 million of $105.3 million in outstanding notes. Avado said it was in compliance with the note agreement and had made all interest payments, according to a filing with the Securities and Exchange Commission.</p><p>In November, chairman and chief executive Tom E. DuPree, for whom Georgia Tech University named its DuPree College of Management, resigned, and Leary came aboard.</p><p>Robert Sroka was named as acting chairman of the Madison-based Avado. At the time, companys stock traded for less than 20 cents a share, down from $28 in 1996.</p>

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