Rally's eateries reopen

Source: Detroit Free Press
Less than a week after closing, 35 metro Detroit Rally’s Hamburgers are back in business.

The reopenings took place over the weekend after the restaurants’ franchisee, Great Lakes Restaurant Co. of Independence, Ohio, turned the locations over to one of its lenders, Bay View Franchise Mortgage Acceptance Co., a subsidiary of Bay View Bank N.A. of San Mateo, Calif.

The 35 metro Detroit sites, along with six Checkers restaurants in Kansas City owned by Great Lakes, closed abruptly Wednesday.

On Thursday, Great Lakes filed for Chapter 11 bankruptcy protection in Cleveland. Bay View, which had an undisclosed delinquent loan outstanding with Great Lakes, had been seeking a court appointed third party to take over the business.

But according to an agreement reached late Friday, Bay View will be the new owner of the restaurants. It has contracted with Clearwater Fla.-based Checkers Drive-In Restaurants Inc. – owner of the Rally’s chain – to run the restaurants.

The deal was reached through the U.S. bankruptcy court in Cleveland, said Doug Wallis, Bay View corporate secretary.

Officials from Great Lakes could not be reached Monday. Bay View representatives said they were thrilled to have the problem resolved.

“We’re just glad to have the stores open again,” Wallis said. He added that the bank is not interested in holding the restaurants and hopes to find a new owner soon.

Brian Doster, an attorney for Checkers, said a number of parties have already inquired about buying the restaurants.

“The cha-ching is still there,” Doster said, referring to Rally’s famed 1990s ad campaign.

The reopening news is good for Rally’s customers, creditors and the approximately 600 employees affected by the closings in metro Detroit.

Doster said executives with Rally’s franchise department arrived in Detroit over the weekend to help manage the restaurants and will issue paychecks due to employees by Wednesday.

Wallis added that suppliers will also be paid.

Twelve Rally’s locations in Michigan owned by other franchisees or Checkers were never closed and are not affected by the Bay View deal.
Source: Detroit Free Press