Bar Louie, the Addison-based gastrobar, on Jan. 27 announced that it has filed for Chapter 11 bankruptcy and has closed 38 locations, including two in Tarrant County. One of those locations is on West 7th Street in Fort Worth and the other is in Hurst near Northeast Mall.
The company said it has reached an agreement with its lenders to act as the stalking horse purchaser and to support the company through a Chapter 11 bankruptcy sale, subject to higher and better offers. The company will continue to operate at more than 90 locations across the United States in the normal course of business.
To implement the sale transaction, Bar Louie has filed voluntary petitions for relief under Chapter 11 protection of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. In advance of the filing, the company closed underperforming locations to strengthen its operational and financial position. There are still nearby locations at the Arlington Highlands, in Irving and at Dallas Fort Worth International Airport.
Bar Louie has received commitments from its lenders for debtor-in-possession (DIP) financing. This financing will allow Bar Louie to continue operations, effectuate the transaction, and fund post-bankruptcy operating expenses, including its obligations to employees and suppliers.
“Bar Louie is a profitable business focused on long-term growth with new investors. The sale through Chapter 11 will help us to focus on our profitable core locations and expand in areas that have a proven track record of success,” said Tom Fricke, CEO of Bar Louie. “Most importantly, it ensures that we can continue to provide superior service to our guests, implement an exciting range of new customer-facing initiatives, expand our marketing influence, and continue to offer the 5-star experience we are known for.”
The company expects to emerge from the Chapter 11 process within 90 days.