High gas prices and low consumer confidence have crimped Americans' eating-out habits. The downturn has hit the restaurant industry hard. Last month, the parent company of Bennigan’s and Steak & Ale, S&A Restaurant Corp., filed for liquidation.
Now the problems have spread to the local restaurant business. Crescent Moon, a popular diner that features retro décor and comfort food fare, has filed for bankruptcy. Crescent Moon has three locations – in the One West Court Square building on Ponce de Leon Avenue in downtown Decatur, Ga.; in Northlake Mall in north DeKalb County; and near the Mall of Georgia in Gwinnett County.
Crescent Moon’s parent company, Global Restaurant Group LLC, filed for Chapter 11 reorganization last month in the U.S. Bankruptcy Court for the Northern District of Georgia. Atlanta bankruptcy attorney Paul Reece Marr is advising Global Restaurant Group.
Although Crescent Moon continues to operate its restaurants, the landlord of its downtown Decatur property has sought the bankruptcy court's permission to start eviction proceedings on Crescent Moon. The landlord claims in a court document that Crescent Moon did not pay its June rent. Arnall Golden Gregory partner James A. Gober and associate Michael F. Holbein are counsel to the landlord, an entity called 06-QCC-0110 LLC. Ackerman & Co. was listed as the landlord in a lease document from 2000 that is included in the court filings.
Jones & Walden partner Leon S. Jones is counsel to Alternative Dining Inc. of Atlanta, which holds title to an estimated $700,000 worth of Crescent Moon’s furniture, fixtures and equipment. Hays & Potter partner James W. Hays is advising Decatur First Bank, which holds title on about $350,000 worth of furniture, fixtures and equipment.
Crescent Moon is renting from Alternative Dining and Decatur First Bank these items, among others: an espresso machine, a dessert display case, ovens, sinks and gas frying machines.
Simpson Law Offices attorney James W. Martin in Atlanta is advising creditor U.S. Foodservice Inc.
Ronald M. Tucker is advising Simon Property Group Inc., owner of Northlake Mall. Tucker is in-house counsel with Simon Property Group.