Casual-dining restaurant operator Granite City Food & Brewery Ltd. has filed for Chapter 11 bankruptcy protection and is putting itself up for sale, the company reported Tuesday.
The Minneapolis-based restaurant company, which operates 25 Granite City Food & Brewery locations and four units of the Cadillac Ranch concept, trades in the over-the-counter market under the ticker GCFB. It filed in the United States Bankruptcy Court for the District of Minnesota.
“After an intensive review of strategic alternatives, Granite City’s Board of Directors determined that a reorganization of its businesses was needed,” the company said in a release Tuesday. “The Board further determined that the restructuring could only be accomplished by filing for Chapter 11. Concurrently, Granite City has announced a going concern sale to KRG Granite Acquisition LLC for aggregate consideration of $7.5 million plus certain liabilities. The transaction remains subject to Bankruptcy Court approval and an auction process which is expected to conclude in February 2020.”
The following subsidiaries also are filing for Chapter 11 protection, according to the parent company: Granite City Restaurant Operations, Inc., Granite City of Indiana, Inc., Granite City of Kansas Ltd., and Granite City of Maryland, Inc.
Granite City said it will continue operation of its 29 restaurants during the sale, and it has secured a $5 million loan, subject to bankruptcy court approval, to fund those operations.
Granite City Food & Brewery features its own beer as well as local and regional craft beers in a casual-dining setting. Cadillac Ranch is a Rock ‘n’ Roll-themed restaurant serving sandwiches, salads, flatbreads and similar casual-dining fare.