CraftWorks Holdings, the parent company of four Northeast Florida restaurants, filed for Chapter 11 bankruptcy reorganization March 4, a move it says will reduce its debt by $140 million.
The four area restaurants – Seven Bridges Grille & Brewery in Southside, Logan’s Roadhouse in North Jacksonville, A1A Ale Works in St. Augustine and Ragtime Tavern Seafood & Grill in Atlantic Beach – will remain open, said Josh Kern, CraftWorks chief experience officer.
The company said it will continue to honor gift cards and loyalty programs.
Nashville-based CraftWorks reached an agreement with affiliates of Fortress Credit Co LLC that provides total consideration of at least $138 million and the assumption of certain liabilities. The deal is expected to reduce CraftWorks’ debt by 60% and “better position its popular brands for long-term growth.”
CraftWorks also filed a motion to approve a “stalking horse” asset purchase agreement with a Fortress Credit Co. LLC affiliate. That would initiate a competitive bidding process to “achieve the highest or otherwise best value” for the company.
“Our goal is for CraftWorks Holdings to emerge with a strengthened balance sheet and a further optimized real estate portfolio that will allow us to execute on our growth strategy, compete more effectively in the casual dining environment in areas in which we have a proven track record of success, and continue to invest in enhancing the dining experience for our millions of raving fans nationwide, whom we look forward to serving for many years to come,” CraftWorks CEO Hazem Ouf said in a news release.
CraftWorks closed 37 underperforming locations in the past few weeks, the release said. Those include several Gordon Biersch and Rock Bottom Restaurant and Brewery locations.
The company acquired Logan’s Roadhouse in 2018.
CraftWorks operates 261 locations in 39 states and the District of Columbia.
Other CraftWorks restaurants include Old Chicago Pizza & Taproom, Big River Grille & Brewing Works, Chophouse & Brewery and The Big Bang at Sing Sing.