The owner of Joe’s Crab Shack filed for Chapter 11 early last week. The company released a statement to the media about the filing recently.
“The chain’s owner, Ignite Restaurant Inc. — which also owns the Brick House Tavern + Tap chain — plans to sell the company for at least $50 million to a private equity firm, according to a report by CNBC.com,” an article on NJ.com reads.
Read more: Bankruptcy Attorney, Hamilton New Jersey
According to the article, Ignite was trying to sell the business in 2016, but sales continued to decline this year and potential buyers eventually pulled their proposals. This is what reportedly led the company to consider filing Chapter 11 bankruptcy.
“Today’s sale agreement represents the culmination of a long and thorough process, and is an important step in positioning Joe’s and Brick House for future growth and success,” acting CEO Jonathan Tibus said in the statement.
NJ.com reports that Ignite has filed a proposal to sell its assets to the private equity firm, Kelly Investment Group. Ignite Restaurant Group said the fate of the restaurants at this time is unclear, but the company many seek bankruptcy protection.
“Michael Kelly, CEO of KRG Acquisitions Co. — an affiliate of Kelly Investment Group — said in a statement that he is excited about acquiring a well-known national brand such as Joe’s Crab Shack and Brick House Tavern + Tap,” the article reads. “Ignite said in its statement that both Joe’s Crab Shack and Brick House Tavern + Tap restaurants will remain open and operating as usual and Ignite customers can expect to continue to enjoy the same great food and service that they have come to expect from our brands.”
Five restaurants are listed on the Joe’s Crab Shack website including Clifton, Deptford, Eatontown, Lawrenceville and South Plainfield. Brick House lists locations in South Plainfield, Princeton and Neptune.
The post Joe’s Crab Shack, Brick House Tavern file for Chapter 11 appeared first on Young, Marr & Associates.
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