A Delaware bankruptcy judge has approved the sale of CraftWorks Holdings — the Nashville, Tennessee-based parent company of the Gordon Biersch, Rock Bottom, Logan’s Roadhouse and Old Chicago restaurant chains, which filed for Chapter 11 bankruptcy earlier this year — to its secured lender, Fortress Credit LLC, which filed a $93 million credit bid, according to Law 360.
Fortress plans to continue operating at least 150 of CraftWorks’ 261 restaurant locations.
According to the report, U.S. Bankruptcy Judge Brendan L. Shannon called Fortress’ bid to use debt it is owed to acquire CraftWorks’ assets the “best available option” for preserving the business.
“The options beyond this transaction are bleak at best,” the judge said.
Shannon added that he feared that Craftworks was moving toward a Chapter 7 liquidation due to the COVID-19 pandemic.
The deal has left CraftWorks’ landlords fearing that they would be out rent payments for March, April and May.