When your restaurant or bar goes into default, the court may appoint a receiver to help protect the value of the establishment. This provides a neutral third party without an emotional stake in the restaurant to help protect revenue and cut expenses. While this process protects the lenders, the receiver may also be able to…
The concept of a single owner-operator running a restaurant on his or her own seldom meets reality. Instead, owners, partners, managers, and investors work together to help a restaurant function smoothly and serve its patrons. For this arrangement to work, the restaurant should usually take the corporate form of a Limited Liability Corporation (LLC). Not…
Having a court appointed receiver take over restaurant management can be daunting. While you have a chance to nominate someone, the receiver is a neutral third party who does not answer to you. On the other hand, the right person will manage a property efficiently and ethically, using expertise that you may not have. You also…
Hotels, restaurants and nightclubs are often risky investments. The value depends on many factors: seasonal variations, optimization of location, shifts in clientele, and the general state of the economy. When properties start to lose value, creditors often look for ways to preserve and enhance the value of what they see as their investment assets. A federal…
When there are disputes between a managing member or other members of a LLC (Limited Liability Corporation), the appointment of a restaurant receiver is one solution. Unlike hotel receiverships, where often this action is more common and brought on by the senior lender prior to foreclosure and in order to preserve the assets and the…
The viability of using a restaurant receiver to resolve a dispute depends on many factors, most of which have not been studied at length. Those who lose the battle are rarely willing to contribute to the academic study. And, those who are able to do not really think much of academic studies. A restaurant, with any…