A popular ‘eatertainment’ chain is facing mass closures as consumer interests change and mounting debt looms over the company.
Illinois-based dining and entertainment hub, Pinstripes Holdings, Inc. filed for Chapter 11 bankruptcy earlier this month citing “decreased revenue,” as the driving force behind the decision.
“These chapter 11 cases were almost a year in the making and reflect the Debtors’ (Pinstripes) only remaining path to maximize value,” the filings read.
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“… Unfortunately, economic deterioration over the past year resulted in decreased revenue and eroded the Debtors’ restructuring alternatives.”
The ‘eatertainment’ segment of the restaurant business is very “niche” — combing food and entertainment in a one-stop-shop.
Pinstripes combines Italian-American cuisine with bowling, bocce, and private events.
But even when consumer demand is driving $129 million in revenue in one fiscal year, such as the case with Pinstripes, it’s still not enough to offset the costs of operation and debts, court filings show.
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Pinstripes owes approximately $143 million in secured debt and an additional $47 million in unsecured obligations, including trade vendors, landlords and tax authorities.
Prior to its filing, the company operated 18 locations across the U.S., the Wall Street Journal reports.
However, it has since closed 10 locations — leaving only eight in operation in Maryland, Ohio, Minnesota, D.C, Illinois and California.
By continuing to operate these remaining locations, the company is preserving nearly 900 jobs, court filings show.