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Article: Ground Round, lenders dispute details of financing; Chain says it suddenly lost support; creditors say many chances given
- Article from:
- The Patriot Ledger Quincy, MA
- Article date:
- February 24, 2004
- Author:
CopyrightCopyright 2004 The Patriot Ledger Quincy, MA. Provided by ProQuest LLC. (Hide copyright information)
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The Patriot Ledger
BRAINTREE - Investment companies defended their decision to
withdraw backing of Ground Round, forcing the sudden closure of 60
company-owned restaurants.
Braintree-based Ground Round shut down all of its company-owned
restaurants on Feb. 13, calling managers in the middle of the
afternoon and telling them to lock the doors and usher all patrons
out the door by 5 p.m. More than 3,000 employees were let go with no
severance.
Ground Round's lawyer said Friday that its lenders "sudden and
unanticipated termination of the company's financing" forced the
abrupt shuttering.
But in documents filed yesterday, the lenders denounced Ground
Round's version of events as "slanderous and ...