Asset sale includes 261 restaurants; 77 franchise locations not part of Chapter 11 filing
CraftWorks Holdings, the parent company of Logan's Roadhouse, Rock Bottom Restaurant & Brewery and Gordon Biersch Brewery Restaurant, has filed for Chapter 11 bankruptcy protection and closed 37 underperforming restaurants.
In a statement, the company said senior lenders Fortress Credit Co. will be a stalking horse bidder in an asset sale totaling at least $138 million plus the assumption of certain liabilities. A Fortress affiliate will also provide $23 million in financing to help ongoing operations during the Chapter 11 process.
CEO Hazem Ouf said the Nashville, Tenn.-based company has spent the past 16 months setting up each brand for long-term growth and success. Part of that plan has included closing “in recent weeks a select group” of locations that were the poorest performers in the portfolio, he said.
“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,” he said in a statement.
The efforts are generating stronger sales in the first quarter, he 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,” he added.
CraftWorks was formed in 2010 when affiliates of private-equity firm Centerbridge Capital Partners purchased Rock Bottom Restaurants Inc. and Gordon Biersch Brewery Restaurant Group Inc. In 2018, the company acquired casual-dining concept Logan’s Roadhouse, creating a multi-brand company of 390 units spread across the U.S.
The company also owns Old Chicago Pizza & Taproom and a collection of specialty brands including ChopHouse & Brewery, Big River Grille & Brewing Works, AIA Ale Works Restaurant & Taproom, Ragtime Tavern Seafood & Grill, Seven Bridges Grille & Brewer and dueling piano concept Sing Sing.
Craftworks and its franchisees operate 338 locations. Of those, 77 franchise locations will not be part of the asset sale, Craftworks said.
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