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Steaksmith shuts down after 31 years, to file for bankruptcy [The Gazette (Colorado Springs, Colo.)]
By Wayne Heilman, The Gazette (Colorado Springs, Colo.)McClatchy-Tribune Information ServicesNov. 26--Steaksmith Steakhouse, a Colorado Springs institution since 1981, closed Saturday as a result of mounting debt and will file for bankruptcy this week, owner Dawson Hubert said Monday.
The restaurant had employed 27 before the closing but was no longer generating enough income to make payments on $200,000 in loans Hubert said he had taken out to acquire the business in 2008 and keep it operating. He said the restaurant had improved in the past several months after struggling in 2010 and 2011, but not enough to make the loan payments.
"It's not fun to have employees out of work at Christmas, but there just wasn't any other way. We are very saddened by the whole thing, for our employees and the 3,800 customers on our mailing list," said Hubert, a former Colorado Springs city councilman. "I put my life's savings into this restaurant, but like most small businesses, we were undercapitalized. We went into it that way and scrambled for 4 1/2 years before we came out on the other side."
Hubert said Steaksmith, located at 3802 Maizeland Road at the northeast corner of Academy Boulevard and Maizeland Road, was hurt by growing competition and the flight of many retailers from Academy to Powers Boulevard.
Steaksmith becomes the third longtime Colorado Springs restaurant to close in the past year or so. Guiseppe's Old Depot shut down in October 2011 after 38 years to become a special events center and Conway's Red Top, a local hamburger chain, shut down its remaining four locations in the Springs between February and August after operating for 68 years.
Return to gazette.com for updates to this story.
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