Finances and Deals: Page 2
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Roti becomes the latest fast casual brand to file for Chapter 11
The 19-unit brand cited the end of its rent deferral agreements as a contributing factor in seeking bankruptcy protection.
By Aneurin Canham-Clyne • Aug. 27, 2024 -
Suit alleges Boston Market owner Jay Pandya looted Corner Bakery Cafe
Corner Bakery’s new owner, SSCP Restaurant Investors, say Pandya bled the brand dry through cash transfers to his management firm.
By Aneurin Canham-Clyne • Aug. 21, 2024 -
Trendline
Restaurant Financing
With ongoing macroeconomic pressures facing restaurants, operators are entering into alternative financing, mergers and acquisitions and even bankruptcy to sustain their businesses.
By Restaurant Dive staff -
Home Run Dugout secures $22.5M, plans expansion
The baseball-centric entertainment concept already plans to open a location in San Antonio, Texas, and Scottsdale, Arizona.
By Julie Littman • Aug. 20, 2024 -
BurgerFi might go bankrupt
Net losses are expected to be $18.4 million for the second quarter, and cash flow is only $4.4 million, marking a stark financial picture for the chain.
By Julie Littman • Aug. 19, 2024 -
Hostmore, TGI Fridays deal delayed
Management says not to expect a Q3 2024 closure, after the companies revised their combined business plan to a full-franchised model.
By Julie Littman • Aug. 9, 2024 -
Presto Automation delisted from Nasdaq
Presto’s Interim CEO predicted delisting will let the firm pursue a startup like capital strategy, as its operations shift to the development of new voice-AI.
By Aneurin Canham-Clyne • Aug. 8, 2024 -
Buca di Beppo files for Chapter 11 bankruptcy, facilitates sale
The chain closed 13 units last week after shuttering numerous locations across the country over the past several months.
By Julie Littman • Aug. 5, 2024 -
World of Beer among latest casual chains to file Chapter 11 bankruptcy
The craft brew chain’s financial struggles began shortly after it instituted a food and spirit program in 2013 that was met with resistance from franchisees.
By Julie Littman • Aug. 5, 2024 -
Batbox secures $7.3M financing, plots US expansion
The baseball-focused eatertainment chain will open its first location in Texas in early 2025 and plans to have 25 units by 2030.
By Julie Littman • July 31, 2024 -
Presto CEO says the business will survive if delisted
The voice AI company, which went public in 2021, could benefit from a NASDAQ delisting that lets it act more like a start-up, Gee Lefevre said.
By Aneurin Canham-Clyne • July 30, 2024 -
Red Lobster expects positive net income by fiscal 2026
The chain also anticipates adjusted EBITDA growth of 43% from fiscal 2025 to 2027 after emerging from Chapter 11.
By Julie Littman • July 25, 2024 -
Pizza Hut franchisee declares bankruptcy
EYM Group has been in a legal battle with Pizza Hut over the past few months and closed over a dozen stores in Indiana and Ohio in June.
By Julie Littman • July 23, 2024 -
Red Lobster to be acquired by stalking horse bidder
After it failed to receive any qualified bids, the casual chain will continue the sales process with RL Purchaser, an entity organized and controlled by secured lender Fortress Credit Corp.
By Julie Littman • July 23, 2024 -
One Table Restaurant Brands files for Chapter 11 bankruptcy protections
Fees on third-party orders and rising debt costs meant a partial recovery from 2020 was not enough to allow the parent company of Tender Greens and Tacaya to repay its creditors.
By Aneurin Canham-Clyne • July 18, 2024 -
The biggest restaurant bankruptcies so far this year
From Red Lobster to Rubio’s, several chains and franchisees went bankrupt as they faced declining traffic, rising costs and other economic factors.
By Julie Littman • July 15, 2024 -
Fat Brands hires financial expert to help deleverage balance sheet
In his new role, Jordan Chirico will focus on the company’s $1.2 billion debt that built up following Fat’s acquisition spree that began in 2019.
By Julie Littman • July 2, 2024 -
Arby’s franchisee files for Chapter 11 bankruptcy
Miracle Restaurant Group declared its second bankruptcy since 2010, citing financial pressures, rising costs, negative same-store sales and its inability to sell a number of low-performing stores.
By Julie Littman • June 26, 2024 -
What drove Rubio’s to declare bankruptcy again
Despite completing a restructuring in 2020, the chain struggled to overcome macroeconomic headwinds that led to three years of negative EBITDA.
By Julie Littman • June 12, 2024 -
Deep Dive
How a bad real estate deal sunk Red Lobster
Trouble began in 2014 when the chain’s owner sold its real estate in a sale-leaseback, putting the seafood brand on the hook for millions in rent.
By Julie Littman • June 10, 2024 -
Rubio’s files for bankruptcy protection
The company, which has been under financial pressures due to diminishing traffic and rising costs, said a Chapter 11 filing is part of facilitating a sale.
By Julie Littman • Updated June 5, 2024 -
BurgerFi seeks strategic alternatives
The company will consider all options as it continues to face liquidity challenges, sales growth problems and net losses.
By Julie Littman • May 31, 2024 -
It’s more than shrimp: What led to Red Lobster’s bankruptcy
A cash shortage, traffic declines and pressure from equity sponsor Thai Union to become its sole shrimp supplier led to high costs — compounding losses induced by the ill-fated Ultimate Endless Shrimp promo.
By Julie Littman • May 21, 2024 -
Red Lobster declares bankruptcy
The chain’s bankruptcy is the culmination of months of financial woes, which included significant losses, trouble paying its bills on time and a planned divestment by its minority owner.
By Julie Littman • May 20, 2024 -
Red Lobster closes 48 locations, auctions off contents
The chain, which has had trouble paying its bills on time, may be considering bankruptcy as its minority owner divests from it.
By Julie Littman • May 14, 2024 -
Fat Brands files for Twin Peaks IPO
Fat plans to use the proceeds of an IPO to deleverage its balance sheet, which includes over $1 billion in debt taken on in a flurry of recent acquisitions.
By Julie Littman • May 14, 2024