CraftWorks Holdings, parent company of Old Chicago Pizza & Taproom, Logan’s Roadhouse, Gordon Biersch Brewery Restaurant, and Rock Bottom Restaurant and Brewery, filed for bankruptcy Tuesday in federal court.
Prior to the announcement, the company shuttered 37 underperforming locations. The 261 company-owned stores will continue to operate as usual. The 77 franchises are not a part of the deal and will also continue to operate. All gift cards and loyalty programs will continue to be honored, as well.
Craftworks has an agreement with Fortress Credit, senior lender to the company, that provides total consideration of at least $138 million plus the assumption of certain liabilities. The agreement is expected to reduce Craftworks’ debt by more than $140 million and provide $23 million to continue operations.
Fortress will serve as a “stalking horse bidder” in a court-supervised sales process.
“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 CEO Hazem Ouf in a statement. “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.
” … Throughout the process and beyond, we will remain focused on creating perfectly crafted dining experiences at all of our breweries and restaurants,” he continued. “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.”
Craftworks operates more than 330 domestic restaurants in 39 states and Washington, D.C. The company was rebranded in 2018 after it acquired Logan’s Roadhouse. Its other brands include Big River Grille & Brewing Works, ChopHouse & Brewery, A1A Ale Works, Ragtime Tavern Seafood & Grill, Seven Bridges Grille & Brewery, and Sing Sing, a Big-Bang dueling pianos concept.
