Owner of Joe's Crab Shack chain files for bankruptcy
WILMINGTON, Del. • The owner of the Joe's Crab Shack casual dining chain filed for Chapter 11 bankruptcy on Tuesday amid falling sales, and plans to sell the company for at least $50 million to a private equity firm, according to a court filing.
Ignite Restaurant Group Inc., which also owns the Brick House Tavern + Tap chain, has been closing weaker locations and began to pursue a sale of the business last year, according to court documents.
However, as operations continued to worsen through early 2017, interested bidders withdrew their proposals and Ignite began to consider bankruptcy, according to a court filing by Jonathan Tibus, the company's acting chief executive officer.
Ignite filed with the U.S. Bankruptcy Court in Houston a proposal to sell its assets to Kelly Investment Group, a private equity firm. Other interested buyers will be invited to challenge the Kelly bid at a court-supervised auction, according to court documents.
Read more: http://www.stltoday.com/business/local/owner-of-joe-s-crab-shack-chain-files-for-bankruptcy/article_eb76d1a2-271b-531f-8af6-e2724075936f.html
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