Nashville, Tenn.-based CraftWorks Holdings, which operates 10 full-service restaurant and brewery chains, including Logan’s Roadhouse, Old Chicago, Rock Bottom and Gordon Biersch, has filed for Chapter 11 bankruptcy reorganization.
At the same time, the company has entered into an agreement with affiliates of Fortress Credit Co. LLC, its senior lenders, to sell the company for at least $138 million, plus the assumption of certain liabilities, CraftWorks said in a news release.
The sale is expected to reduce CraftWorks’ debt by more than $140 million, or more than 60%, and “better position the company and its popular brands for long-term growth,” the release said.
CraftWorks said its 338 company-owned and franchised locations nationwide continue to operate and honor all gift cards and loyalty programs. In recent weeks, CraftWorks has closed 37 underperforming locations.
As part of the transaction, a Fortress affiliate has committed to providing $23 million of new debtor-in-possession financing, providing CraftWorks with the liquidity necessary to support ongoing operations.
CraftWorks Holdings operates and franchises full-service dining restaurants in 39 states and the District of Columbia. Its portfolio includes Logan’s Roadhouse, Old Chicago Pizza & Taproom, Rock Bottom Restaurant & Brewery, ChopHouse & Brewery, Big River Grille & Brewing Works, AIA Ale Works Restaurant & Taproom, Ragtime Tavern Seafood & Grill, Seven Bridges Grille & Brewery and Sing Sing.