Schlotzsky's

Schlotzsky's, Austin, Texas, has filed for Chapter 11 protection. The Austin, Texas-based restaurant chain reported a net loss of $11.7 million in 2003, compared to a net loss of $199,000 in 2002, and also a net loss of $671,000 in the first quarter of 2004, according to the court filing. Schlotzsky's currently has more than 500 franchisee- and company-operated restaurants in the U.S. and overseas. The restaurants are expected to continue normal operations during Schlotzsky's financial restructuring, per the company. "We have taken an important step toward creating a stronger Schlotzsky's," Sam Coats, president and CEO, said in a statement. "It became apparent to our board that this action was necessary to protect Schlotzsky's from millions of dollars in claims, judgments, and debts accumulated during the past few years, while enabling us to restructure the company."