This Popular Chain Restaurant Just Filed for Bankruptcy
The beloved restaurant was more than just an eatery, but now it's in danger.
It'd be an understatement to say it's been a turbulent year for the hospitality industry. With lockdowns forcing restaurants to close for weeks or even months on end, some have had to shutter permanently or file for Chapter 11 bankruptcy protection in the hopes of salvaging their businesses. According to S&P Global, there have been more than 50 retail bankruptcies this year, the highest figure in 11 years. And this week, we learned of yet another filing: Punch Bowl Social just announced that it is filing for Chapter 11 bankruptcy.
Conceived as an "eatertainment" chain, the restaurant paired the usual food and drink offerings with arcade games and karaoke sessions for what it termed "serious foodertainment and real-world funning." But the coronavirus put Punch Bowl Social in an impossible situation.
"In a now too-familiar tale, the debtors' businesses were immediately and significantly adversely affected by COVID-19," Punch Bowl said in its bankruptcy court filing, according to Restaurant Business Online. "Unfortunately, because of restrictions limiting the number of patrons at each venue, as well as the public's uneasiness of going out to eat or drink in public during a pandemic, each of those venues was losing money on a daily basis."
Bankruptcy filings show that Punch Bowl has liabilities of between $10 million and $50 million, CNBC reports.
Pre-pandemic, Punch Bowl Social had expanded to 20 locations, having secured a $140 million investment from Cracker Barrel. But as the shutdowns began in states where the chain was growing—like California, Texas, and some locales throughout the Midwest—CEO Robert Thompson, who had founded the company in 2012, exited the business, the first sign of serious trouble.
Read on for some of the other recent casualties of the current economic situation, and for more retail news that could affect you, check out This Legendary Chain Is Closing Over 1,000 Stores by March.
Read the original article on Best Life.
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