November 01, 2016, Punch Bowl Social on Broadway in Denver.
Andy Cross | Denver Post | Getty Images
Punch Bowl Social filed for Chapter 11 bankruptcy on Monday after a coronavirus epidemic devastated its business.
As recently as February, the once boozy “Interpretation” chain was supposed to be the future of the restaurant industry, offering food and drink along with arcade games and karaoke. Cracker Barrel invested 140 140 million in the company’s stake last year, and the Punch Bowl rose 20 places by the time the lockdown took place in March.
The crisis evaporated its customer base, and Cracker Barrell opted for its own liquidity chore in March instead of helping the Punch Bowl stay afloat.
CEO Robert Thompson, who founded Punch Bowl in 2012, quit the company amid an epidemic. Its primary lender Crowdout Capital became a partial owner and retained a new chief executive: John Headwood, who has earned a reputation as a turnaround expert.
The Punch Bowl has liabilities ranging from $ 10 million to 50 50 million, according to financial filings. JPMorgan Chase, its top creditor, owes more than 10 million for a payment protection program loan. Its other major creditors are the leaseholders of its locations spread across most of the country.
Chuck E. Cheese’s parent company, Ruby Tuesday and J. The company is the latest in a flood of restaurants and retailers seeking bankruptcy protection during epidemics, including crews. Bankruptcy experts have predicted a new flood of filings after the holidays.
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