Bloomington, Minnesota-headquartered Granite City Food & Brewery announced that it has filed for Chapter 11 bankruptcy, and the brewpub chain is seeking approval to enter auction and sale procedures in the U.S. Bankruptcy Court for the District of Minnesota.
Granite City owes its 20 largest creditors more than $4.2 million, according to court documents.
“The Granite City board of directors and management team have thoroughly assessed our strategic options and financial situation and unanimously agree that this structured sale process represents the best possible solution for the company,” board chairman and CEO Richard H. Lynch said in the release. “We believe pursuing this path will provide value to our creditors, enable one or more future restaurateurs to operate our locations and preserve hundreds of jobs.”
Granite City and KRG Granite Acquisition LLC have agreed to a sale of $7.5 million plus certain liabilities, according to a press release. The sale is subject to approval from the court and a subsequent auction process expected to end in February.
Granite City, which was founded in 1999, operates 25 locations, primarily located in the Midwest.
In 2018, Granite City ranked fifth in volume among national brewpub chains, despite sales declining 12%, to 13,493 barrels, across 32 locations, according to the Brewers Association.
At the close of trading Thursday, Granite City stock (GCFB) was valued at $0.10 on the OTC Market.