After closing 38 locations, Bar Louie plans to concentrate its efforts on their profitable locations. Here are more details explaining their strategy...
Addison, Texas-based gastropub chain Bar Louie has announced that the company will put itself up for sale after filing for Chapter 11 bankruptcy.
The 90-unit company’s lenders will act as the stalking horse purchaser during the transaction and support Bar Louie as the company sells its assets in a bankruptcy auction.
The company does not expect the filing to have a meaningful impact on day-to-day business” but the company has closed 38 "underperforming locations.
Several local news reports confirmed that multiple Bar Louie locations closed their doors without notice this past weekend in Cincinnati, Colorado Springs, and Buffalo and Rochester, NY. The company's estimated assets are worth around $85 million, while estimated liabilities are worth around $140 million.
The company has received commitments from its lenders to allow for debtor in possession financing, which will allow the restaurant chain to continue operations.
Tom Fricke, CEO of Bar Louie stated, “Bar Louie is a profitable business focused on long-term growth with new investors. The sale through Chapter 11 will help us to focus on our profitable core locations and expand in areas that have a proven track record of success. Most importantly, it ensures that we can continue to provide superior service to our guests, implement an exciting range of new customer-facing initiatives, expand our marketing influence, and continue to offer the 5-star experience we are known for."