Prandium, the Irvine, California-based restaurant business, has reported a slump in annual EBITDA from $32m (£21.8m) to $14.8m (£10.09m) on sales down 20.9% to $424.6m (£289.44m).

Fourth-quarter losses increased from $14.1m (£9.6m) to $74.3m (£50.7m) on sales down 40.8% to $75.6m (£51.5m).

Prandium, the operator ofrestaurants under the Koo Koo Roo, Hamburger Hamlet and Chi-Chi's names, said it could not guarantee that the company would be able to successfully negotiate with its creditors

or successfully resolve its capital structure.

The company sold its El Torito restaurant division last June.