KRG to buy Joe’s Crab Shack after bankruptcy
KRG Acquisitions Co, LLC, an affiliate of Kelly Companies, said it will buy United States restaurant chains Joe’s Crab Shack and Brick House Tavern + Tap, after the chains’ parent company filed for Chapter 11 bankruptcy.
Ignite Restaurant Group filed for bankruptcy on 7 June after suffering from steadily declining sales. The company’s total debts surpass USD 197 million (EUR 175 million). The company’s assets, meanwhile, total USD 153.4 million (EUR 136 million).
“We look forward to delivering great food and impeccable customer service to the many valued customers of Joe’s and Brick House. KRG believes Joe’s and Brick House will benefit from KRG’s experience in the casual dining industry and its existing operational capabilities,” said Michael Kelly, CEO of KRG Acquisitions.
Ignite operates 137 Joe’s Crab Shack and Brick House restaurants in the U.S., along with three franchises in the United Arab Emirates. The company employs 8,400 people.
“Both Joe’s Crab Shack and Brick House Tavern + Tap restaurants will remain open and operating as usual and Ignite customers can expect to continue to enjoy the same great food and service that they have come to expect from our brands,” Ignite said in a statement.
In April, Ignite said that Robert S. Merritt resigned as CEO and left the company’s board, and then Jonathan Tibus, a managing director at Alvarez & Marsal, a turnaround firm, replaced him.
“Today’s sale agreement represents the culmination of a long and thorough process, and is an important step in positioning Joe’s and Brick House for future growth and success,” Tibus said.
Seafood distributors and wholesalers with claims against Ignite can visit a dedicated web site for the bankruptcy proceedings here.