According to the Wall Street Journal, the operator of the Fox & Hound, as well as the Champps chain of sports bars and casual dining restaurants, filed for Chapter 11 bankruptcy protection last week.
F&H Acquisition Corp., which owns the chains, said that it has watched sales dwindle and costs rise over the last couple of years, as consumers have reigned in spending at taverns. According to the Journal, the operator owns 101 of the premium sports bars and grills across the country.
“F&H’s debts add up to about $119 million, topped by $68.4 million in first-lien secured loans and $39.8 million in second-lien secured loans. Landlords, trade vendors and other unsecured creditors are owed, in the aggregate, $11.2 million,” the Journal reported.
The company is looking for an auction to take place by March 4, which would open its chains up to bidders. The chains employ about 6,000 people. Prior to the bankruptcy filing, which took place in the U.S. Bankruptcy Court in Wilmington, Delaware, the company closed 24 restaurants.
I Need a Maryland Bankruptcy Attorney
While the Fox & Hound and Champps filing may seem like it does not represent how bankruptcy can help a citizen, it does. Much like a Chapter 11 bankruptcy, Chapter 13 and Chapter 7 bankruptcies can help people stop collections, stop foreclosures and restructure debt.
An individual who has unsecured debt may be facing the same difficult decisions. In this case, a Chapter 7 bankruptcy allows a debtor to discharge unsecured debt, like credit card debt or medical bills, which often go unpaid when financial issues arise.
Chapter 13 bankruptcy is an excellent option for individuals who have a standard income, but have fallen behind in payments and/or are about to lose their house or car. Under this type of bankruptcy, you can save non-exempts assets and stop the threat of repossessions, and get on the path to financial strength.
If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation. You can also visit our Facebook page, our LinkedIn page, our Google+ page and our Twitter page—we appreciate our followers.
Law Firm of Kevin D. Judd
Judd’s Judgment: If you make repayments in a Chapter 13 bankruptcy, creditors are able to see that you were successful in paying back debts.