Court approves continued borrowing from CrowdOut Capital
Punch Bowl Social, the restaurant and entertainment concept that filed for Chapter 11 bankruptcy protection in December, has named a chief restructuring officer, Ted Gavin, and received court approval to borrow more money from CrowdOut Capital, which was the company’s senior secured lender before the bankruptcy petition, according to Gavin, who is managing director of Gavin/Solmonese, a bankruptcy consulting firm in Wilmington, Del.
Gavin said the Delaware court where Punch Bowl Social filed for bankruptcy protection has also approved the company’s bid and sales procedures, which could result in either debt reorganization or a sale of the company.
Denver-based Punch Bowl Social operated 13 restaurants before the pandemic started, and had three that were still open, but losing money, at the time of the bankruptcy filing.
At the time, the company cited pandemic-related restrictions and the public’s unease about gathering in large groups to eat and play games as reasons for its financial woes.
Shortly after the onset of the pandemic in the United States, in Late March, Cracker Barrel Old Country Store, which had taken a minority stake in the concept in mid-2019, said it would not continue to invest in the brand.
Gavin also said that the company’s proposed investment banker, SSG Capital Advisors, is shopping the brand out for potential buyers. He said “the process is robust, with many active parties.”
“I am confident that this process will result in a transaction that recognizes the true value of this brand,” he said in an email.
Contact Bret Thorn at [email protected]
Follow him on Twitter: @foodwriterdiary
