Sports bar operator Fox & Hound files for bankruptcy
Dec 15 (Reuters) - Fox & Hound Restaurant Group filed for Chapter 11 bankruptcy to sell its assets through a court process, as weakening profit and cash shortage hurt the sports bar and pub operator, a court filing showed.
F&H Acquisition Corp, parent of Fox & Hound, listed out assets and liabilities in the range of $100 million to $500 million. The parent operates sports bars and casual family dining restaurants under the Fox & Hound and Champps brands.
Besides Fox & Hound, 41 of F&H's affiliates also filed for bankruptcy protection.
The company said it was not "immune to the effects of the economy and rising commodity prices, and restaurant sales, and overall profitability and liquidity, suffered significantly."
F&H also sought court approval for a Debtor-In-Possession (DIP) facility, which will provide it with a revolving credit facility of about $3.5 million on an interim basis and about $9.6 million on a final basis.
Fox & Hound said the chapter 11 route would help it run a streamlined sale process for substantially all of its assets.
Through September 2013, the company had revenue of $218.8 million, a 5 percent reduction over the comparable period in the prior year, the filing showed.
Founded in Arlington, Texas in 1994, the company and its affiliates' operate about 101 restaurants located in 27 states, and have about 5,500 hourly employees and 500 salaried employees.
The case is F&H Acquisition Corp et al, Case No. 13-13220, U.S. Bankruptcy Court, District of Delaware.