DENVER — Beleaguered from the one-two punch of coronavirus-forced closures and abandonment by its primary financial backer at the start of the pandemic, Punch Bowl Social filed for Chapter 11 bankruptcy protection on Monday.
In a filing made with the U.S. Bankruptcy Court for the District of Delaware, the 8-year-old Denver-based company reported estimated liabilities of between $10 million and $50 million to between 200 and 999 creditors — the same range it listed for its estimated assets. Aside from the $10.1 million Paycheck Protection Program loan it holds with JPMorgan Chase Bank, most of its creditors with the largest unsecured claims are leaseholders of its 16 properties scattered across the country.
Punch Bowl — an “eatertainment" chain featuring scratch-made food, a wide selection of drinks and games ranging from virtual-reality adventures to skee ball — had recorded seven consecutive years of growth heading into 2020 and received a $140 million investment in July 2019 from Cracker Barrel Old Country Store (Nasdaq: CBRL).
But with all of its locations closed temporarily due to coronavirus, Cracker Barrel announced on March 25 it would not invest any money to prevent foreclosure of its Punch Bowl assets, leaving the company without its majority investor and throwing its future into question.
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