Granite City files for bankruptcy in attempt to sell company

Dec. 17, 2019

Granite City Food & Brewery has filed for Chapter 11 bankruptcy in an attempt to sell its business.

“After an intensive review of strategic alternatives, Granite City’s board of directors determined that a reorganization of its businesses was needed,” the company said in a release. “The board further determined that the restructuring could only be accomplished by filing for Chapter 11.”

The company also announced a going-concern sale for $7.5 million plus certain liabilities.

The transaction and auction process have to be approved by the U.S. Bankruptcy Court, which is expected to be done in February.

Granite City has secured a $5 million debtor-in-possession loan, subject to bankruptcy court approval, to fund operations through the auction and sale process. Granite City will continue to operate its restaurants during the bankruptcy process.

The Sioux Falls restaurant is at 2620 S. Louise Ave.

“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,” said Richard  Lynch, CEO and chairman of the board. “We believe pursuing this path will provide value to our creditors, enable one or more future restauranteurs to operate our locations and preserve hundreds of jobs.”

The proposed auction process, if approved by the bankruptcy court, would allow interested parties to submit binding offers at the auction to acquire substantially all of Granite City’s assets, free and clear of Granite City’s indebtedness and liabilities.

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Granite City files for bankruptcy in attempt to sell company

Granite City Food & Brewery has filed for Chapter 11 bankruptcy in an attempt to sell its business.

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