Steak 'n Shake's decline continues. The corporation went on a location-closing frenzy last year due to the epidemic.
Steak 'n Shake has engaged financial counsellors and may file for bankruptcy, according to sources.
The chain is considering out-of-court reorganisation or bankruptcy. Biglari Holdings may not be able to refinance its March-due $153 million debt.
Steak 'n Shake had 610 stores in 2020, but the epidemic shuttered over 80. Half of Biglari's 500 sites are owned by franchisees and franchise partners.
The business spans 28 states and is famed for its juicy burgers and hand-dipped milkshakes.
The business has faced financial problems for years despite its popularity.
The epidemic accelerated Steak 'n Shake's declining same-store sales.
The chain has sought to recover by switching to counter service and selling shuttered locations.
If these revenues don't materialise, CFO Steven May says the company's future is doubtful.
The firm believes it may be forced to close a lot of restaurants, lay off many staff, and lose franchise partners who depend on restaurant renovations.