USA, MN: Granite City Food & Brewery files for Chapter 11 bankruptcy
St. Cloud-born Granite City Food & Brewery announced it has filed for Chapter 11 bankruptcy to allow for a reorganization of its businesses, according to a news release issued on December 17.
Granite City Food & Brewery's premiere location opened in June 1999 in St. Cloud. Over the past two decades, the chain has expanded to 13 states. The company also operates Cadillac Ranch restaurants in four states.
"After an intensive review of strategic alternatives, Granite City's Board of Directors determined that a reorganization of its businesses was needed. The Board further determined that the restructuring could only be accomplished by filing for Chapter 11," the release states.
The company intends to file a motion seeking approval of auction and sale procedures, and has announced a possible sale to KRG Granite Acquisition LLC for $7.5 million plus certain liabilities. The transaction remains subject to bankruptcy court approval and an auction process, which is expected to conclude in February.
Granite City has secured a $5 million debtor-in-possession loan, subject to bankruptcy court approval, to fund operations through the auction and sale process, the release states.
Management expects to continue operations without interruption during the Chapter 11 case.
"The Granite City Board of Directors and management team have thoroughly assessed our strategic options and financial situation and unanimously agree that this structured sale process represents the best possible solution for the company," stated Richard H. Lynch, board chairman and chief executive officer, in the release. "We believe pursuing this path will provide value to our creditors, enable one or more future (restaurateurs) to operate our locations, and preserve hundreds of jobs."
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