Punch Bowl Social on Broadway in Denver on November 01, 2016.
Andy Cross | Denver Post | Getty Images
Punch Bowl Social ravaged its business for Chapter 11 bankruptcy on Monday following the coronavirus virus epidemic.
As recently as February, the once-buzzy “eatery” chain looked to the future of the restaurant industry, offering arcade games and karaoke with food and drinks. Cracker Barrel invested $ 140 million in the company’s stake last year, and by the time of lockdown in March, the Punch Bowl had risen to 20 locations.
The crisis evaporated its customer base, and Cracker Barrel opted to increase its liquidity in March instead of helping it keep its bowl closed.
CEO Robert Thompson, who founded Punch Bowl in 2012, left the company amid an epidemic. Its primary lender CrowdOut Capital became a partial owner and hired a new chief executive: John Heywood, who has earned a reputation as a turnaround specialist.
Punch Bowl’s liabilities range between $ 10 million to $ 50 million according to bankruptcy. JP Morgan Chase, its top creditor, owes more than $ 10 million for a payment protection program loan. Most of its creditors are leaseholders from scattered locations across the country.
The company is the latest in a flood of restaurants and retailers who have sold Chuck E. Cheese’s parent company, including Ruby Tuesday and J. Crew, has sought bankruptcy protection during the epidemic. Bankruptcy experts predict a new flood of evils after the holidays.