Hundreds of employees face potential layoffs after a popular “eatertainment” chain filed for bankruptcy earlier this month.
Pinstripes, which is based in Northbrook, Illinois, and offers Italian-American cuisine, bowling and bocce, filed for Chapter 11 bankruptcy due to “decreased revenue” and has since closed 10 of its 18 locations across the U.S., MassLive.com reports. The company is currently operating in Illinois, California, Maryland, Minnesota, Ohio and Washington, D.C., which is preserving nearly 800 jobs, according to court filings.
Pinstripes was reported to have made $129 million in revenue during the past fiscal year, but is reported to owe approximately $143 million in secured debt and an additional $47 million in unsecured obligations, which includes trade vendors, landlords and tax authorities. The company was reported to already have a “stalking horse” bid worth $16.6 million from one of its lenders, which would be in the form of converted debt, according to the bankruptcy filing obtained Restaurant Business Online by earlier this month.
“To be blunt, the process proposed to be consummated through these Chapter 11 cases is not perfect, and it is not where the debtors wished they were right now,” the company said in the court documents.
Pinstripes was aware of the possibility of bankruptcy for months, having been delisted from the New York Stock Exchange over a low market capitalization in March, just one year after going public. The company had also received a $7.5 million loan to fund operations at the time and was warned about staff cutbacks in the following months.
Pinstripes was founded in 2007 and offers bowling, bocce and bistro, having once opened 18 total locations, which has since been cut down to eight in recent days. The “eatertainment” restaurants average 26,000 to 38,000 square feet, though an estimated 80% of revenue is made off of food and beverages.
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