BLT Restaurants Group, the New York-based parent company of BLT Steak and BLT Prime steakhouses, has declared bankruptcy. The move comes after the company couldn't repay the $3.3 million Paycheck Protection Program (PPP) loan it had received in 2020, according to Restaurant Business.
The federal government refused to forgive the company's loan in full, with 40% still outstanding, according to the Chapter 11 bankruptcy filing. The documents show that BLT's restaurants were affected by local dine-in capacity restrictions from April until October of 2020, and many of its employees did not return to work, which put the company out of compliance with the terms of the loan. During the course of the year, BLT Restaurants Group lost $7.6 million in income.