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.
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
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 […]
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!
