Issues at Barnhill’s Buffet?

Having a problem with Barnhill’s gift cards you bought during the holidays? We hear from one unhappy customer that access to the cards have been cut off. It seems the new corporate ownership might have scrambled things up a bit.

We didn’t know this, but Barnhill’s – based in Madison, Tenn., – filed for Chapter 11 bankruptcy protection on Dec. 3. A few days later Star Buffet of Scottsdale, Az., said it would buy the company, pending bankruptcy court approval. Perhaps during this transition period there’s been a problem with system compatibility – or whatever.

Barnhill’s has location in Tupelo and Starkville in Northeast Mississippi. It also has a location in Jackson and Meridian.

We’ll try to find out more and let you know.

64 Responses to “Issues at Barnhill’s Buffet?”


  1. 1 Jason February 5, 2008 at 9:23 pm

    gee people still eat there? i hate buffets because they tend to get the worst health department raitings.

  2. 2 jaybirdms February 6, 2008 at 12:32 pm

    I don’t see how that place stays so busy. It’s terrible.

  3. 3 tupelobizbuzz February 6, 2008 at 12:36 pm

    How about Bonanza? Anyone eaten in the Tupelo location? The restaurant run ads in the Journal all the time and the menu sounds delicious. Anyone know if it’s worth my time?

  4. 4 jaybirdms February 6, 2008 at 1:35 pm

    STAY AWAY!!! As a kid, I used to love it. Well, not long after my wife and I were married, we went there. Terrible. Dirty. Gross. I guess it was on a Tuesday or Wednesday night, because the place was nearly empty. They seem to stay busy, though.

  5. 5 Jason February 6, 2008 at 2:01 pm

    i haven’t ate at bonaza in nearly 10 years.

  6. 6 Greg "The Brick Man" February 6, 2008 at 9:52 pm

    Haven’t been to Bonanza in years, Barnhill’s was not at all impressive. By far the best buffet in town would be Ryan’s…

  7. 7 tupelobizbuzz February 7, 2008 at 8:50 am

    This is the other half of bizbuzz (the pickle-hating half), and I have no major complaints about Barnhill’s. It is what it is. Nothing special, never had any problems with them, although it’s been probably six months since the last time I ate there.

    The first time I ate at a Barnhills was in Jackson, Tenn., and I literally cracked up after reading this sign at the register: “We are not responsible for broken or cracked teeth.” You know they wouldn’t have put the sign there unless somebody had broken a tooth/lost dentures one day. Too funny.

    I’ve never eaten at the Bonanza at Tupelo, but as a kid growing up in Vicksburg, Bonanza (which later was renamed Ponderosa - clever, huh?) and Golden Corral were the only steak places around. Again, nothing special, but if filled your belly.

    As for Ryan’s, we’ve only been once, and that was enough for us. It was hot, it was dirty, and the food wasn’t all that good. That’s been almost two years ago, and maybe things have changed, because the place seems pretty busy most of the time.

  8. 8 Greg "The Brick Man" February 7, 2008 at 8:56 pm

    Ryan’s remodeled a couple years ago - food is ok - but all places like that tend to be the same, and I don’t really like going to them…I prefer a regular sit down restaurant where people wait on you!

  9. 9 Joe February 7, 2008 at 11:18 pm

    The gift cards are not being honored even though it still carries the Barnhill name. That shouldn’t be. If you are going to capitalize on the name, you should honor the gift card bearing that name. I bought 2 because I eat there a lot and at Christmas they offered $100 gift cards for $75. I bought 2. I totally used one and had $92 left on the other when they stopped honoring them. Several people, according to the cashier whom she knows personally, bought several hundred dollars worth and now are stuck. I liked it because you pick and choose what you wanted and didn’t have to wait. Anyway, that sort of stinks. If the new owners have millions of dollars to buy a business they should honor the cards if for nothing more than community good will. It would be money better spent than even advertising, because they say if you are unhappy with a company you spread the bad word to at least 15 other people and they to other people and so on. If you go in let them know. Maybe they will have a change of heart.

  10. 10 Sarah Johnson February 9, 2008 at 8:18 pm

    Barnhill’s!!!!!!!!!!Help

  11. 11 Sarah Johnson February 9, 2008 at 8:57 pm

    Oops! Hit the wrong button.

    Barnhill’s!!!!!!!! Help, Someone, Anyone.
    This is what I know. Barnhill’s sold gift cards in December of 2007 and thru January 31, 2008. May have sold some in November. I purchased $500 worth in $100 increments in December 2007. Barnhill’s was owned by Dynamic USA at that time:
    Dynamic USA, 1210 Briarville Road, Madison, TN 37115, Phone numbers:
    615-277-1238,615-277-1218, 615-277-1234, Bob Langford was one of the owners. They filed for bankruptcy on December 3, 4, or 5 of 2007. They continued to sell the gift cards. Star Buffet, Inc.,1312 N. Scottsdale Road, Scottsdale, AZ 85257, Phone 480-425-0397, Robert Wheaton, Chairman of the Board, President, Chief Executive Officer,, Philip Johnson, Thomas Schadt, Todd Brown, Director, B. Thomas M. Smith, Jr, Director, Craig B. Wheaton, Director (brother of Robert Wheaton)submitted their desire to buy all Barnhill’s or most all. Problems arose and they decided to buy only these:
    Jackson, TN, Bartlett, TN, Collierville, TN, Starkville, MS, Meridian, MS, Jackson, MS, Tupelo, MS, Monroe, LA, Bossier City, LA, Leesburg, FL, Newport-Richey, FL, Pensacola, FL, Tallahassee, FL, Jonesboro, AR, Huntsville, AL. They “took possession” on February 1, 2008, at which time, the restaurants stopped accepting the gift cards. However, they have now started offering the following:

    Example: If you have a $100 gift card and you come in with 5 guests, your total purchase is $60, they will allow you $25 and you surrender your card and pay the remaining $35 out of your pocket.Plus, you have lost the remaining $40 on the card.

    Example: If you have a $100 gift card and you come in alone, your total purchase is $12; you give them your gift card and if you like, you may take out $13 worth of “take-out food”. Your loss is $75
    Some are accepting the offer. DO NOT DO IT. You will have no recourse. I feel there is fraud here. The citizens of Tupelo and surrounding areas have been taken advantage of as well as all the other citizens located in and around the other cities where Barnhill’s is located. Do we start a class action lawsuit or do we contact Attorney General Jim Hood or, since they are located in many states, is there something more that can be done. Any legal help out there. I feel we were snuckered. Help!!!!!!!! Any Advice???????

    One who represents the restaurant says that since Dynamic USA filed for bankruptcy, we are left holding the bag. However, some purchased cards before the filing, some like me purchased cards after they had filed for bankruptcy. I think we all need legal advice.

  12. 12 Sarah Johnson February 9, 2008 at 9:02 pm

    Barnhill’s!!!

    As an added note, it would help if our great news media would wake up and put this on the news and in the paper so the gift card holders would not have to go to the restaurant only to be turned away. Some of those who purchased the cards are Seniors on a fixed income and this just might be the only time they could afford to eat out. This is just vile.

  13. 13 Tim February 10, 2008 at 1:28 pm

    Barnhill has already lost my family’s business after hearing about this. If WTVA ch9 would tell this story, I wonder if Barnhill would reconsider their heartless position?

  14. 14 tupelobizbuzz February 11, 2008 at 9:36 am

    We are in fact working on a follow-up story in the printed edition of the Daily Journal, because of the interest generated on our blog that we first created last week regarding this issue.

    And BTW, throwing out potential TV coverage doesn’t earn points with us. And I’m sure it’s the other way, too - mentioning that the Daily Journal is doing something isn’t going to prompt WTVA to do out and do a story either.

    Nevertheless, we’re working on the story to see if company officials have a reasonable explanation - or not - for what’s going on.

  15. 15 Deb Clark February 11, 2008 at 1:23 pm

    I’d like to know if anyone knows how the workers at Barnhills will get paid their last checks. My son and his friend were working there—went to work that Monday,the doors were closed with a sign SORRY WE ARE CLOSED-THANKS FOR THE MEMORIES.That was 2 weeks ago and we can’t seemtofind anyone who knows anything.

  16. 16 Tim February 11, 2008 at 1:55 pm

    Doesn’t earn points with us. Who is us?

  17. 17 jaybirdms February 11, 2008 at 2:05 pm

    You mean I can’t write a Letter to the Editor asking for Kay Bain to be brought back to the Mornin’ show???

    Wait, somebody already did that.

  18. 18 tupelobizbuzz February 11, 2008 at 2:23 pm

    Ms. Clark, which Barnhill’s are you talking about?

    Tim, “us” would be “me”, which would be Dennis. Not to be a snot, but when I hear occasionally “TV will be there to cover it,” that doesn’t mean a whole lot to me. Good for them. They’re at a lot of place we’re not and vice versa. We don’t dictate coverage of an event to them, and neither do they. But we do show up at a lot of things together. And we all do the best we can. Well, most of the time.

    That being said, here’s an update from Barnhill’s - not much. They’ve said we need to talk to the new owner, who in turn has a few message from us. We’ll see how far and how often we can bash our heads into a wall.

    Jaybird, write as many letters as you’d like. But you might do better with a petition to get Kay back on weekdays. The “new era” in morning broadcasts at WTVA is …. different. Definitely not as entertaining, but you know, you just do what you think is best sometimes and hope for the best.

    Meantime, it’s time for lunch. Maybe I’ll head to Barnhill’s…

  19. 19 Tim February 11, 2008 at 3:06 pm

    Hi Dennis, I now know your name, but let’s try this again. When you say “They’re at a lot of place we’re not and vice versa” and “We don’t dictate coverage of an event to them, and neither do they. But we do show up at a lot of things together. And we all do the best we can. Well, most of the time.”
    Who is we? and who do you represent?

  20. 20 tupelobizbuzz February 11, 2008 at 3:13 pm

    Oh, sorry - I thought everyone knew tupelobizbuzz was the Business & Money team at the Daily Journal, since it’s linked on the djournal Web site’s Blog Center.

    Dennis would be Dennis Seid, business editor. The other half of the team is Carlie Kollath, our very capable business reporter. The blog is the place we go to post updated news, quirky items and other things business-related - and otherwise. Call it another service to our readers. And another creative outlet.

    And, thanks for reading (and posting)!

  21. 21 tupelobizbuzz February 11, 2008 at 3:34 pm

    “Very capable” - you are too kind, Dennis Seid.

    BTW, this would be the other half of Biz Buzz, Carlie Kollath. I’ve been in New Albany this afternoon and missed out on the rousing discussion of who we are. Check out tomorrow’s Journal to see what my secret New Albany mission was.

    I did spend the morning on the phones trying to get the story on what is going on with these gift cards. We have messages in with the local people and the corporate people in Arizona. Also, it’s my understanding that the Barnhill’s in Tupelo is still open. Deb - which location were your son and his friend working at?

    If any other issues pop up, please let us know. We’re here to get to the bottom of things …

  22. 22 Tim February 11, 2008 at 8:01 pm

    Hi Dennis, I had no idea this forum was affiliated with the DJ. I came across it by googling tupelo forums. On behalf of our citizens who have purchased unusable Barnhill’s gift cards, I would like to thank you and your very capable staff for trying to get to the bottom of things.

  23. 23 tupelobizbuzz February 12, 2008 at 10:27 am

    Tuesday morning update: We still haven’t heard from our friends at Barnhill’s. Surprise!

  24. 24 tupelobizbuzz February 12, 2008 at 2:25 pm

    Tuesday afternoon update: Ditto from previous post.

    Remember the CVS Pharmacy fiasco a few months back, when the developer and attorneys representing the company just couldn’t get their act together to satisfy residents’ objections? While it was a PR disaster, at least there was SOME attempt by the company to work things out. And at least they TRIED to explain what was going on.

    We’re willing to listen, Star Buffet/Barnhill’s folks - and your loyal customers would like to know, too.

    But that’s just me.

  25. 25 Joe February 12, 2008 at 6:18 pm

    As for closing - One day this last week the the Tupelo location was closed. I can’t remember, maybe it was Sunday, because their ceiling was falling in because of rain.

  26. 26 tupelobizbuzz February 13, 2008 at 10:01 am

    Wednesday morning update: The local management at Barnhill’s returned our calls, but immediately directed us to corporate. We left another round of messages yesterday afternoon with Barnhill’s/Star Buffet corporate and still haven’t heard a peep from them.

    Great quote from Washington Post business columnist Allan Sloan about companies who don’t talk to reporters: “More space for me, less space for you.”

  27. 27 Watchdog February 13, 2008 at 12:06 pm

    I, too, purchased gift cards which have been refused. How can this be. I am sure all those who purchased the gift cards have been very good customers and given them our business for as long as they have been in the city of Tupelo. Since Valentine’s Day is tomorrow, I wonder how they would feel if all those gift card holders suddenly appeared at their door with gift cards in hand. I am sure this will be a day that many will try to use their cards. Would it be fair for the TV Station or the “blog” group were there to witness/document and publish/air on TV. I think it would be justice, not that I feel they should go out of business but they certainly are not taking care of those of us who have put their salaries in their pockets. Now they want to throw us under the bus.

  28. 28 tupelobizbuzz February 13, 2008 at 1:28 pm

    Watchdog, interesting idea. I’m not sure if you are aware of this, but Biz Buzz is the online extension of the Business & Money section from the Northeast Mississippi Daily Journal. It is written/moderated by business editor Dennis Seid and business reporter Carlie Kollath (me).

    We’re working on a story about this issue and keep running up against walls with corporate Barnhill’s / Star Buffet.

    However, we can come at this another way. If you bought gift cards at Barnhill’s, have had them refused and are willing to go on the record, please e-mail me at carlie.kollath@djournal.com or 678-1598. The sooner you get in touch, the better.

  29. 29 tupelobizbuzz February 13, 2008 at 1:29 pm

    And - that interview offer applies to everyone. Not just Watchdog.

  30. 30 Tim February 13, 2008 at 6:19 pm

    I just saw on the 6 O’clock news on ch.9 that an employee told WTVA the manager was gone for the day. Barnhill’s should be ashamed of themselves. I wished Dennis and Carlie would run the story and maybe if Barnhill’s received enough negative press, they would do the honorable thing and accept the gift cards.

  31. 31 tupelobizbuzz February 13, 2008 at 6:29 pm

    Good to see they’ve run into the same wall we have!
    Guess we’ll try to bash our heads again tomorrow.

  32. 32 tupelobizbuzz February 14, 2008 at 6:15 am

    Well, it’s 6 a.m. on Thursday - maybe our friends at Barnhill’s/Star Buffet have slept it over and thought about the P.R. disaster they have spinning out of control.

    We’ll get to the office early and try, try again.

    And just a shot over the bow to the restaurant - it sounds pretty pathetic when TV and newspapers report something like “they had no comment.”

  33. 33 tupelobizbuzz February 14, 2008 at 10:12 am

    We’ve spoken with the general manager at Barnhill’s and we definitely don’t want to be in his shoes. It seems like when the previous owner declared bankruptcy, it shut down the computer system that keeps up with gift card balances. So, now the folks at Barnhill’s don’t know who has a $25 card and who has a $100 card.

    We’re working the phones today to see what else we can find out. Stay tuned.

  34. 34 Deb Clark February 14, 2008 at 1:14 pm

    My son and his friend were working at the Barnhills in Jacksonville Fl.There were 4 or 5 of them in the area and all of them have closed. Has anyone heard any more? Does anyone know the number for corporate? I’d sure like to have it if you do!

  35. 35 Alvin February 14, 2008 at 11:03 pm

    After reading about the gift certificate problem at Barnhill’s, I will not eat there again until they start treating their customers fairly and let them use the gift certificates. I was in Tupelo last week and was thinking of going to Barnhill”s to eat, I was near Barnes crossing and decided to not drive across town to eat.One thing that always bothered me about Barnhill”s was the sign posted asking customers to leave tips. I think that is a way to pay for bussing tables. Leave a tip at a buffet!! COME-ON. Why not just have a drink bar and eliminate a waitress.

  36. 36 indygirl February 15, 2008 at 6:49 am

    What a cruel and insensitive statement from Drew W. Just because Drew doesn’t like buffets, doesn’t make them the scum of the earth. I’ve eaten at buffet style place but I also been blessed to eat at such places like Joe’s Stone Crab in Miami, The Palm in Las Vegas, Carnegie Deli in NYC and countless other fine dining establishments. But when I want to eat at a buffet, I can do that also and it doesn’t make me trash. People have a preference and thank God they do. Not everybody likes Applebees or Logan’s. I am totally appalled at such a statement. This let’s me know that Tupelo, MS and Northeast still has a long way to go when it comes to tolerance. If you don’t have 1.5 children, live in a 4 bedroom ranch brick home and go out to a national chain dining joint on Friday night then the heck with you and your lifestyle. It makes the rest of us trash. Just an FYI, I make 6 figures, live in a 2500 quare foot home, drive a Land Rover, wear designer shoes and clothes and I also go the Ryans and Barnhills. So if that is being trash then I wear the title happily. It beats being whatever Drew W is…Peace!!!

  37. 37 tupelobizbuzz February 15, 2008 at 6:57 am

    Drew’s comment has been deleted from the post…sorry that we didn’t catch it until early this morning, but we can’t keep an eye on the blog 24/7.

    Nevertheless, we try to monitor it as best we can and delete inappropriate comments (and spam) as they appear.

    Also, there is a related post regarding Barnhill’s, so please read the CEO’s comments in bizbuzz.

    It’s called “CEO speaks out about Barnhills”

  38. 38 indygirl February 15, 2008 at 7:00 am

    You don’t have to apologize for that. Thanks for the update on Barnhills I read it before I read this series of blogs.

  39. 39 stan February 16, 2008 at 9:19 pm

    I understand that Steve Barnhill is buying some of the restaurants back from Dynamic. Is this true ? They say he is going to remodel and reopen under a different name. I understand that this has already happened in Decatur Al.

  40. 40 Alan February 17, 2008 at 9:23 am

    My folks in Florida got “stiffed” with one of the cards. Thanks for the blog. Keep up the good work.

    Al

  41. 41 Watchdog February 18, 2008 at 2:39 pm

    What was this about the General Manager saying they could not find out if the Gift Cards had $25 or $100. What a joke. All I have to do or the General Manager has to do is call the number on the back of the Gift Card and punch the right button when asked to and you will get the balance on your gift card. That is what I did.

    Also heard that the Columbus Barnhill’s was bought by one who has Western Sizzlin or maybe Santa Fe. They are open and are accepting the Barnhill’s gift cards there. Think they may be also exchanging them for their own cards.

    It would be interesting to hear what Star Buffet, Inc. has to say about that.

  42. 42 tupelobizbuzz February 18, 2008 at 3:45 pm

    After hearing from Mr. Wheaton, I called the gm back about the gift cards. Indeed, he said you could find out the balance, but the company isn’t sure how accurate it is. But it’s all they have to go on right now.

    Haven’t heard about the Barnhill’s in Columbus. However, from what we’ve heard, the location in Starkville closed. And I doubt Star Buffet would do anything differently in light of the Columbus dealings. Wheaton expressly said he knew what he was getting into before Star Buffet bought Barnhill’s, and he didn’t buy the gift card part of it.

    Read more of his comments here:
    http://tupelobizbuzz.wordpress.com/2008/02/14/ceo-speaks-out-about-barnhills/

  43. 43 tupelobizbuzz February 18, 2008 at 3:46 pm

    Also of interest - Star Buffet doesn’t issue plastic gift cards. It only uses hand-written gift certificates.

  44. 44 Tupelo23 February 19, 2008 at 12:15 pm

    Steve Barnhill is opening his new restaurants in Florence and Decatur, Alabama. Read about them here. http://www.timesdaily.com/article/20080219/NEWS/802190323/1011/NEWS01

  45. 45 Brenda McBride February 25, 2008 at 5:47 pm

    We went to the Leesburg Barnhills with a $25 gift card. It came to $18.05. When I asked for the change or credit I was rudely just told no. No explaination why. I asked to see the manager. She was very vague but finally told me about the bankruptcy and that the new owners did not honor the gift card. Period!! She also said some people had $100 cards that were not honored. I hate to tell you this, but keeping someone elses money is “stealing”!!! The food was cold, the people were rude and I was robbed. I am thinking this would make a good human interest story for one of the television stations. People should be made aware of this scam before they go there. There are no signs or warnings that this will happen with their gift cards. I feel it is my duty to protect them. Your company should be ashamed of itself.

  46. 46 Watchdog February 25, 2008 at 10:42 pm

    I think I agree with Sarah Johnson in her post. This selling of gift cards after filing for bankruptcy by Dynamic USA appears to me to be illegal, fraud at the least. As she said, maybe we should contact our Attorney General, Jim Hood. This just is not right. Someone got our money and we get nothing. That is like buying car insurance and then finding out it was not worth the paper it was written on. And, as for as Mr. Wheaton’s comment, seems this man is a cold-hearted and calloused individual. Well, as they say, “what goes around, comes around.” He may not have success in this endeavor of his. How dare he suggest that we were looking for a bargain. Looks like he, too, was looking for a bargain when he bought the restaurants that were, I am sure, “a bargain”. Maybe his words will come back to haunt him. Someone like that certainly does not care about the customers who are putting money in his bank account. You would think he could use the gift card redemption costs as a tax write-off as a loss. They use everything else. Why not this and gain satisfied and loyal customers.

  47. 47 Tim February 26, 2008 at 7:34 am

    I wonder if our new public service commissioner can help. Is his name Jason Presley?

  48. 48 Tupelo23 February 26, 2008 at 11:44 am

    Brandon Presely.

  49. 49 Tupelo23 February 26, 2008 at 11:45 am

    Woops. That’s Presley.

  50. 50 tupelobizbuzz February 26, 2008 at 11:57 am

    We understand your frustration. The Barnhill’s employees we’ve spoken with are equally frustrated because they have been put in the middle of a rock and a hard place. We’re keeping tabs on the situation, but right now we don’t have anything new to report.

    If you would like to do something in the meantime, here are a few phone numbers for you:

    Star Buffet (current owner of several Barnhill’s)
    CEO Robert Wheaton 480-425-0397

    Dynamic USA (previous bankrupt owner of several Barnhill’s)
    (615) 277-1238,(615) 277-1218, (615) 277-1234

    U.S. Bankruptcy Court for the Middle District of Tennessee (handling Dynamic’s bankruptcy case)
    Clerk’s Office Staff (615) 736-5584

    Brandon Presley, Northern District public service commissioner
    Voice: (601) 961-5450 Toll-Free: (800) 356-6428
    Aberdeen Toll Free: (800) 637-7722 Aberdeen Direct: (662) 369-8148

    Jim Hood, Mississippi attorney general
    (601)359-3680

  51. 51 tupelobizbuzz March 4, 2008 at 10:30 am

    Barnhill’s isn’t alone in its gift card woes.

    Click here to read about other retailer bankruptcies and their impact on gift card purchases.

  52. 52 Barnhills March 14, 2008 at 8:49 am

    Dynamic is going to make good on the gift cards. Here is the information on how to cash in your gift card.

    ‘If you have a card’

    Barnhill’s Buffet gift card holders who bought their cards in a specific window of time - from Dec. 3, 2007 to Jan. 31 - are entitled to refunds, said Caldwell Hancock, bankruptcy lawyer for the former owner, Barnhill’s Buffet Inc.

    Here is how to get it:

    E-mail Stacey Gleixner at StaceyGleixner@dynamicusa.com
    the controller for the bankruptcy estate.

    Or write her at:

    Barnhill’s Buffet Inc.Attn: Stacey Gleixner, Controller1210 Briarville Road, Building FMadison, TN 37115

    Card holders need to include photocopies of the front and back of the card, provide what they believe is the remaining balance and include their contact information.

  53. 53 tupelobizbuzz March 14, 2008 at 2:58 pm

    Indeed, there is truth to this. Here’s the story from the St. Petersburg Times: http://www.sptimes.com/2008/03/06/Pasco/Bankruptcy_erases_buf.shtml

    I spoke with the reporter this afternoon and the refunds are legit. I’m poking around to get some more details.

  54. 54 tupelobizbuzz March 14, 2008 at 3:00 pm

    Also, the reporter said some people have complained that their e-mails to Stacey have either bounced back or they haven’t heard back in a timely matter.

    If this happens to you, let us know. If Barnhill’s/Dynamic says it is going to make good but then doesn’t, we want to know.

  55. 55 Sarah Johnson April 16, 2008 at 2:24 pm

    Hello??????? Sent my information off for the gift card refunds. Yesterday, I sent e-mail enquiring about an expected date to receive refund. It was returned as undeliverable–not a known address. Is it possible that we have been duped again? This is beginning to get old. The information as to how we apply for the refund came from the Star Buffet, Inc. folks. Was it just a way to get everyone off their backs?

  56. 56 tupelobizbuzz April 16, 2008 at 2:48 pm

    Sarah - I hate to hear that the situation has not been resolved yet. If it makes you feel any better, I’m still getting at least a call a week from people who are in your same situation.

    And, yes, it seems like it was a way to get everyone off their backs because no one is communicating otherwise with us. However, the information actually came from the Bankruptcy Court and Dynamic. We haven’t talked with Star Buffet since the CEO granted us an interview.

    I haven’t heard from Dynamic, either. I sent Stacy Gleixner an e-mail when we posted the info back in March and never heard back. I also left a voice message for her (no response). I left another voicemail today.

    You might try the Bankruptcy Court and see where it directs you. And, you’re always welcome to try the state AG’s office, but you might get the run around. Here are the numbers I have:

    Star Buffet (current owner of several Barnhill’s)
    main number 480-425-0397

    Dynamic USA (previous bankrupt owner of several Barnhill’s)
    main number (615) 277-1234

    U.S. Bankruptcy Court for the Middle District of Tennessee (handling Dynamic’s bankruptcy case)
    Clerk’s Office Staff (615) 736-5584

    Brandon Presley, Northern District public service commissioner
    Voice: (601) 961-5450 Toll-Free: (800) 356-6428
    Aberdeen Toll Free: (800) 637-7722 Aberdeen Direct: (662) 369-8148

    Jim Hood, Mississippi attorney general
    (601)359-3680

  57. 57 Caldwell Hancock May 8, 2008 at 11:42 am

    Barnhill’s Gift Card Holders:

    Until last week I was the bankruptcy attorney for Barnhill’s Buffet, Inc. the corporation that operated the Tupelo restaurant from Feb. 2005 until the assets were sold to Star Buffet, Inc. via bankruptcy court order endered earlier this year.

    I have read with great interest the emails regarding the gift cards. Even those who claim to know the “facts” are off base, and are being sent of in every wrong direction in an efort to obtain their refunds. This is my effort to help.

    First, get your players right. The bankrupt company, Barnhill’s Buffet, Inc. is not owned by “Dynamic USA.” There is no company named Dynamic USA. Dynamic USA is a URL or wedsite name. Your gift card was bought from Barnhill’s Buffet, Inc., not Dynamic USA or any other name, so you can quit chasing non-existent companies and people who have nothing to do with BBI. For some of you there is good news to come.

    On December 3, 2007 filed for Chapter 11 reorganization. United States bankruptcy Court Middle District of Tennessee, Nashville, Case No. 07-08948. I was the original attorney for BBI’s bankruptcy estate.

    At its prebankruptcy peak, BBI operated almost 40 restaurants in 6 states. But a number of factors, including gas prices and economic woes caused many of its stores to begin to lose money.

    Prior to bankruptcy BBI had to close several stores in several states, trying to reduce operations to a group of stores that could survive.

    By the filing date BBi had only 29 operating stores, Tupelo being one of those.

    BBI hoped to survive, but time proved that it could not. So it tried to sell its stores to raise cash to pay its creditors. Some it managed to sell with court approval = Tupelo being one - some it had to close because those could not break even. While in bankruptcy and before we sold Tupelo, we honored all gift cards.

    Now as regards Tupelo, once we filed, the bnkruptcy court authorized BBI to sell the Tupelo assets including the right to use the name Barnhill’s to Star Buffet Holdings a subsidiary of Star Buffet, Inc. of Phoenix, AZ.

    Star paid cash into the bankruptcy estate for those assets. Star did not agree to honor gift cards, and one of the reasons is that we at BBI had no idea who owned the cards or the amounts still owed on those cards. It was a moving unidentified target. There was nothing fraudulent or illegal afoot as you will soon see.

    BBI remained in Chapter 11 until I converted it to Chapter 7 just two weeks ago, after it had sold or shut down all of its stores.

    Now for the good news: The Chapter 7 trustee has a special pot of money, about $600k (that is proceeds of the sales of the restaurants paid to the estate by Star - see they are not the bad guys some think - set aside to pay off the balances of all gift cards sold by BBI on or after December 3.

    This money is there because my clients and I went to some pains to make sure there would be money available to redeem all gift cards sold during the bankruptcy. See, we are the good guys. So nobody has been defrauded - the only problem is that because I am now gone and my prople, including Bob Langford have been replaced the old contact addresses and numbers in the email trail above are no good = therefore card holders do not have CURRENT information about who to contact for a refund.

    Ready? The Chapter 7 Trustee is Michael Gigandet. His address and phone and email are found on the court’s PACER website. He manages this problem now and is a nice fellow who will be glad to assist.

    Here’s the important part - time is running out!!!!!!!

    By court order anybody and everybody who desires a refund on their card MUST FILE A FORM “PROOF OF CLAIM” with the court not later than June 2 (be here before you know it)!!!!!!!!!!!!! or you will lose your right to be repaid!!!.

    So if you want your money, get a proof of claim form and send it to the court in Nashville so that it arrives before midnight on June 2. That form has a place to say how much you are owed and attach a copy of front and back of the card to the form.

    Those who bought a card vefore Dec 3 must also file a Proof of Claim form, but they may never see that refund because of the way the banktuptcy law cuts of certain claims. Congress did it so if you want to get mad, get mad at Congress.

    Star does not have to honor the cards. If I ran Star I would just to promote goodwill, but that’s not my call.

    Finally, in some of our former locations I am told that there is now a business named Santa Fe operating and even using the Barnhill’s trade name. They are infringing and BBI has nothing to do with Santa Fe.

  58. 58 tupelobizbuzz May 8, 2008 at 7:36 pm

    Wow - great information from Mr. Hancock. Too bad we couldn’t have gotten such information earlier to help explain things better.
    But we certainly appreciate it and hope Barnhill’s customers - both current and former - can benefit from it.

  59. 59 tupelobizbuzz May 9, 2008 at 1:42 pm

    This is the other half of Biz (Carlie) and I want to balance out Dennis’ earlier comment. Mr. Hancock did call me two or three times while I was working of the Barnhill stories. Granted, there is a lot of information that is in his comment that we didn’t discuss and that I wish he would have told us before, but Hancock did make himself available prior to this month. I don’t want to start a undeserved smear campaign.

  60. 60 CEFritts May 9, 2008 at 7:38 pm

    Just read the lastest on Barnhill’s gift cards. How exactly do I get a Proof of Claim form and or the PACER website information? Thanks, CEFritts.

  61. 61 CEFritts May 12, 2008 at 7:27 pm

    Ok here is more from the Court. For your further information. This is the result of additional searches. I had already found the required “Proof of Claim” form which was attached. To bad I can not get paid for my time, etc. This is from the horse’s mouth, so to speak. Hope this will eventually work.
    From: Michael Gigandet
    To: ‘C.E.Fritts’
    Sent: Monday, May 12, 2008 5:09 PM
    Subject: RE: Bankruptcy case 3-07-bk+08948
    You may file a claim with the clerk using the attached form. I anticipate a distribution of unknown amount in about one year. You must have a claim on file. Michael 5-12-08
    CEFritts

  1. 1 Pages tagged "barnhills buffet" Trackback on February 9, 2008 at 5:35 pm
  2. 2 CEO speaks out about Barnhills « Biz Buzz Trackback on February 15, 2008 at 3:28 pm
  3. 3 Barnhill’s to refund gift cards « Biz Buzz Trackback on March 14, 2008 at 7:07 pm

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