Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

Ignite Restaurant Group Chapter 11 Petition Filed

Ignite Restaurant Group and ten affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case number 17-33550. The Company, which operates a portfolio of restaurant concepts, including Joe's Crab Shack and Brick House Tavern + Tap, is represented by Edward Ripley of King & Spalding. The Company concurrently announced that it has entered into an agreement with an affiliate of private equity firm Kelly Companies, pursuant to which it would sell both of its brands for a cash bid offer. Pursuant to Section 363 of the U.S. Bankruptcy Code, Ignite Restaurant Group also will be filing a motion for the implementation of bidding procedures to allow other companies the opportunity to submit bids through a Court-supervised process to purchase the assets being sold. The Company anticipates the sale transaction, which is subject to customary closing conditions, will be completed within 60 to 90 days. Both Joe's Crab Shack and Brick House Tavern + Tap restaurants will remain open and operating as usual during the Chapter 11 process. C.E.O. Jonathan Tibus comments, "Today's sale agreement represents the culmination of a long and thorough process, and is an important step in positioning Joe's and Brick House for future growth and success." According to documents filed with the Court, "The Debtors have continued to experience declining financial performance and declines in comparable restaurant sales and income from operations at Joe's and Brick House. The Debtors have closed underperforming restaurants and implemented cost reduction measures to help mitigate the effect of these declines and improve their financial position and liquidity."

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