Punch Bowl Social files for Chapter 11 bankruptcy after pandemic devastates its business

Punch Bowl Social on Broadway in Denver, November 01, 2016.

Andy Cross | Denver Post | Getty Images

Punch Bowl Social filed for Chapter 11 bankruptcy on Monday after the coronavirus pandemic devastated its business.

As recently as February, the once-buzzy “eatertainment” chain looked to be the future of the restaurant industry, offering arcade games and karaoke along with food and drinks. Cracker Barrel invested $140 million in a stake of the company last year, and Punch Bowl had grown to 20 locations by the time lockdowns went into place in March.

The crisis evaporated its customer base, and Cracker Barrel opted to shore up its own liquidity in March instead of helping Punch Bowl stay afloat.

CEO Robert Thompson, who founded Punch Bowl in 2012, exited the company in the midst of the pandemic. Its primary lender CrowdOut Capital became a partial owner and hired a new chief executive: John Haywood, who has earned a reputation as a turnaround specialist.

Punch Bowl has liabilities of between $10 million to $50 million, according to bankruptcy filings. It owes more than $10 million for a Payment Protection Program loan to JPMorgan Chase, its top creditor. The majority of its other creditors are leaseholders from its locations scattered across the country.

The company is the latest in a flood of restaurants and retailers who have sought bankruptcy protection during the pandemic, including Chuck E. Cheese’s parent company, Ruby Tuesday and J. Crew. Bankruptcy experts have predicted a new flood of filings after the holidays.


Products You May Like

Articles You May Like

Fierce local battles over power lines are a bottleneck for clean energy
Cameron Diaz To “Un-Retire” Via Netflix Action-Comedy ‘Back In Action’ With Jamie Foxx
Bowel cancer campaigner Deborah James asked us to check our poo, here’s exactly how to do it
Probe into whether Boris Johnson misled parliament over partygate begins with call for evidence
Book Riot’s Deals of the Day for June 26, 2022

Leave a Reply

Your email address will not be published.