GAINES TOWNSHIP, Michigan (WOOD) — The company that owns Logan’s Roadhouse and Old Chicago has filed for Chapter 11 bankruptcy.
CraftWorks Holdings, LLC filed the request in a federal court in Delaware Tuesday. The Nashville-based company is asking the court to sign off on an agreement to sell its assets to Fortress Credit Co. LLC.
CraftWorks says the move would reduce its debt by more than 60%, or $140 million, and free up funding for future investment. As part of the deal, Fortress would give CraftWorks $23 million in financing to support operations during the bankruptcy process.
CraftWorks and its affiliates own 261 restaurants nationwide and franchise another 77 locations. Their brands include Logan’s Roadhouse, Old Chicago Pizza & Taproom, Gordon Biersch and Rock Bottom Restaurant & Brewery.
CraftWorks says it recently shuttered 37 “underperforming” restaurants but the company says it also updated its menus and rolled out a better guest service platform to improve efficiency.
“We are now looking forward to completing an expedited process that we are confident puts our business on solid financial footing for the future,” CraftWorks Holdings CEO Hazem Ouf stated in a Tuesday news release.