NASHVILLE, Tenn. — CraftWorks Holdings LLC announced that it’s filing for Chapter 11 bankruptcy.
The company owns Old Chicago, Logan’s Roadhouse, Rock Bottom and Gordon Biersch. Craftworks said that senior lenders Fortress Credit, plans to sell at least $138 million plus the assumptions of certain liabilities.
The transaction is expected to reduce the company’s debt by more than $140 million, or more than 60 percent, which will lead to additional liquidity for future investments.
When the transaction is completed the company will receive $23 million working capital to pay employees and keep operations going.
Over the past 16 months, we have made significant progress on many fronts to transform our business and position our brands for long-term growth and success,” said Hazem Ouf, CEO of CraftWorks Holdings. “Our team has enhanced the guest dining experience through the addition of new and higher-quality menu offerings and an improved guest service platform, and we have made good strides in increasing operational efficiency across our organization. These and other efforts are translating into stronger sales trends, with our first quarter off to a solid start for all of our divisions.”
Craftworks said it will still operate all 338 locations around the US during the Chapter 11 proceedings and honor any gift care or loyalty programs. In recent weeks, the company did close 37 locations.
“As a further step forward in our transformation, we exited in recent weeks a select group of our locations that were our poorest performers,” Ouf said. “We are now looking forward to completing an expedited process that we are confident puts our business on solid financial footing for the future.”
The company operates in 39 states and the District of Columbia. Other restaurant brands include, Chophouse & Brewery, Big River Grill & Brewing Works, and the Big Bang at Sing Sing.
Ouf concluded: “Our goal is for CraftWorks Holdings to emerge with a strengthened balance sheet and a further optimized real estate portfolio that will allow us to execute on our growth strategy, compete more effectively in the casual dining environment in areas in which we have a proven track record of success, and continue to invest in enhancing the dining experience for our millions of raving fans nationwide, whom we look forward to serving for many years to come.”