Barbecue franchisee files for Chapter 11

Greater Atlanta Bar-B-Q LLC, a Norcross-based franchisee of Sonny’s barbecue restaurants, filed Thursday for Chapter 11 bankruptcy protection.

The initial filing, made in the U.S. Bankruptcy Court for the Northern District of Georgia, provided few details about the company’s plans or financial position. Chapter 11 bankruptcy is designed for companies that hope to reorganize and remain in business.

In its filing, Greater Atlanta Bar-B-Q estimated it had $1 million to $10 million in assets and $1 million to $10 million in liabilities. The company’s top unsecured creditor was Sysco Food Service, which was listed as being owed $392,000.

Sonny’s, based in Maitland, Fla., has more than 138 restaurants, concentrated in the Southeast. The filing did not say how many restaurants Greater Atlanta Bar-B-Q owns. A Sonny’s company Web site lists 14 outlets in northern Georgia.

Powell Goldstein, an Atlanta law firm, handled the bankruptcy filing.

Greater Atlanta Bar-B-Q and Powell Goldstein did not return messages. Sonny’s did not return a message either.

The restaurant industry has come under pressure in the past year as food costs rise and customer traffic slows. Casual dining, moderately priced sit-down restaurants, has been hit hard as customers trade down to fast-food outlets or dine at home.

Bennigan’s and Steak & Ale, Texas-based chains, went out of business earlier this year after their parent company filed for Chapter 7 bankruptcy, which calls for liquidating assets.