Shells Seafood Restaurant closed abruptly in Holmes Beach this week after its parent company filed for bankruptcy.
"The restaurant industry has been negatively affected by the economic downturn as recently reflected by the closing of Bennigan's and Steak and Ale restaurant chains," said Marc Bernstein, Shells' chief executive officer.
The announcement is another blow to a struggling local restaurant industry, which has seen at least 30 restaurant closings already during the last year.
Another Shells restaurant at 7253 Tamiami Trail S. in Sarasota will remain open, according to its manager.
The restaurants are owned by parent company Shells Seafood Restaurants, based in Tampa, which filed for Chapter 11 bankruptcy Tuesday. It owns 18 restaurants and a partial interest in two others. Eight restaurants were closed including the Manatee County location as well as those in Ocala, Winter Park, Orlando, Kissimmee, Winter Haven, St. Petersburg and Fort Myers, officials said.
Four other Shells restaurants were not included in the bankruptcy filing.
As of June 30, the restaurant chain listed assets of $10.7 million and liabilities of $10.2 million, according to the bankruptcy petition. The chain employed about 850 workers.
The bankruptcy comes as casual-dining restaurants suffer from a pullback in consumer spending. In late July, the parent company of Bennigan's and Steak & Ale shut down company-owned restaurants after filing for Chapter 7 bankruptcy.
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