LOUISVILLE Ky. Tumbleweed Inc., parent of the 37-unit Tumbleweed Southwest Grill chain, filed for Chapter 11 bankruptcy protection last week after unsuccessfully attempting to restructure $18 million in debt from lender GE Capital Franchise Finance Corp.
The Louisville-based company employs about 2,200 people and operates 23 corporate restaurants. It franchises an additional 14 locations throughout the Midwest. Last year it had closed numerous locations in the Wisconsin, Illinois and St. Louis markets. The company reportedly said it is not planning to close any additional restaurants or lay off employees during the bankruptcy proceedings and will not make any changes to the menu or daily operations.
Tumbleweed was the subject of a management overhaul last year that resulted in Matt and Michael Higgins, brothers and franchisees of the chain, assuming control of the company as chief executive and chief operating officer, respectively. They had reportedly been in negotiations with GE Capital for about 14 months before filing for Chapter 11 last week.
According to court filings for the Western District of Kentucky, Tumbleweed Inc. said it held assets and liabilities of the same amount, between $10 million and $50 million. It listed between 100 and 199 creditors, the largest of which is GE Capital, which is owed $18 million, of which $10 million is secured.
Contact Elissa Elan at [email protected].