Restaurant chain hit with double-whammy

Oct 14, 2008 5:03 PM

by Ray Poirier | For months Tilman Fertitta, chairman and CEO of Landry’s Restaurants Inc. (LNY) insisted that he had the financial backing to take the company private at $21 a share.

Then, a double-whammy hit his good intentions. The credit crunch caused lending institutions to lock their doors and Hurricane Ike hit the Landry’s restaurants in the Houston-Galveston area of Texas, not only closing the properties but also causing extensive damage.

The resultant loss of revenue placed LNY in a position where it might not meet the requirements of recent loans.

Fertitta said he hoped to meet with Jefferies & Co. to possibly work out an arrangement where he could make a substantially-reduced offer for the company.