Recently, Last Call Guarantor LLC, parent company of the national Fox & Hound restaurant chain, announced that it had filed for Chapter 11 Bankruptcy protection.
According to The Wall Street Journal, the company’s reorganization plan calls for closing a portion of its restaurant locations and engaging in negotiations with creditors to reduce its remaining debt load.
Photo courtesy of Dylan Gillis (Unsplash.com)
Last Call Guarantor becomes insolvent after underperforming
In its bankruptcy filings, the company claimed assets of only between $10 million and $50 million, but its liabilities ranged from $100 million to $500 million. Last Call cited a decline in the restaurant industry as sales dropped and labor costs rose for its 80 restaurants and 4,700 employees nationwide.
The company stated in court documents that this is the second time the owner of these chain restaurants has sought Chapter 11 bankruptcy protection. In 2013, the ownership group led by private equity funds Steel Partners LLC and Newcastle Partners LP sold the restaurant chains to Cerberus Business Finance after it reported only $14.5 million in assets and $91.5 million in debt. At the time, the owners claimed consumers were spending less on dining out due to the economic downturn in the U.S.
Last Call Guarantor’s reorganization plan
Its bankruptcy plan calls for the closing of at least 18 underperforming restaurant locations, with more possibly on the way in the near future. Last Call also plans to negotiate with debtors to cut its debt load, but there are no active agreements in place. The company also may liquidate a portion of its remaining assets.
The significance of the Last Call Guarantor filing
Fox & Hound, Last Call’s largest asset, is just the latest among several top national chain restaurants to seek Chapter 11 bankruptcy protection since 2015. According to Kansas.com, Logan’s Roadhouse, Johnny Carino’s and several other notable chains filed for bankruptcy protection due to the restaurant recession last year.
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
