Addison, Texas-based gastropub chain Bar Louie has announced that the company will put itself up for sale after filing for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware. The 90-unit company’s lenders will act as the stalking horse purchaser during the transaction and support Bar Louie as the company sells its assets in a bankruptcy auction.
According to a media announcement, the company “does not expect the filing to have a meaningful impact on day-to-day business” but the company has closed 38 "underperforming locations," according to the bankruptcy filing. Several local news reports confirmed that multiple Bar Louie locations closed their doors without notice this past weekend in Cincinnati, Colorado Springs, and Buffalo and Rochester, NY. The company's estimated assets are worth around $85 million, while estimated liabilities are worth around $140 million.
The company has received commitments from its lenders to allow for debtor in possession financing, which will allow the restaurant chain to continue operations.
“Bar Louie is a profitable business focused on long-term growth with new investors. The sale through Chapter 11 will help us to focus on our profitable core locations and expand in areas that have a proven track record of success," Tom Fricke, CEO of Bar Louie said in a statement. "Most importantly, it ensures that we can continue to provide superior service to our guests, implement an exciting range of new customer-facing initiatives, expand our marketing influence, and continue to offer the 5-star experience we are known for."
Bar Louie is expected to emerge from Chapter 11 after 90 days.
Update: A previous version of this story listed a broad range for the company's liabilities and assets. The story has been updated to reflect more specific numbers.
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