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Steak ’n Shake Considers Bankruptcy Filing to Manage Debt Load

  • Chapter 11 court filing could come as soon as next week
  • Company has also discussed potential out-of-court options
Steak ’n Shake, known for its burgers and milkshakes, was founded in 1934 in Normal, Illinois.

Steak ’n Shake, known for its burgers and milkshakes, was founded in 1934 in Normal, Illinois.

Photographer: Jim Watson/AFP/Getty Images

Steak ’n Shake Inc. is considering filing for bankruptcy to address upcoming debt maturities as pandemic disruptions to the restaurant business drag on, according to people with knowledge of the matter.

Advisers including FTI Consulting Inc. and the law firm Latham & Watkins are prepared to put the Indianapolis-based chain into Chapter 11 as soon as next week, said the people, who asked not to be identified discussing confidential plans. The burger chain earlier enlisted advisers to help it manage its debt load, which includes a loan due in March.