PORTLAND, Ore.--(BUSINESS WIRE)--Second paragraph, third sentence now reads: During the restructuring, SRH plans to launch a process with the goal of finding new capital and best position the Company for long-term success.
The corrected release reads:
SUSTAINABLE RESTAURANT HOLDINGS LAUNCHES RESTRUCTURING AND SALE PROCESS TO ENSURE CONTINUITY OF RESTAURANT OPERATIONS AND CREATE PATH FOR LONG-TERM SUCCESS
Company Receives Commitment for up to $1.9 Million in Debtor-In-Possession (DIP) Financing to Provide Sufficient Liquidity to Meet Ongoing Business Obligations
Current Limited Restaurant Operations Are Expected to Continue Without Change or Disruption
Sustainable Restaurant Holdings (“SRH” or “the Company”), the Oregon-based operator of Bamboo Sushi and QuickFish, today announced a plan to restructure the business and find new capital in an effort to proactively address the impact of the COVID-19 pandemic, which has required the Company to limit restaurant operations and has significantly affected its ability to generate revenue.
As part of this plan, SRH has filed to restructure its business under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Court”). SRH believes the Chapter 11 process is the best pathway to preserve the Company’s value and ensure its ability to continue to operate on a limited basis until the COVID-19 restrictions are lifted. During the restructuring, SRH plans to launch a process with the goal of finding new capital and best position the Company for long-term success. SRH expects to complete the sale process in approximately 90 days.
“We are facing the same challenges as many other consumer-focused businesses, especially those in the restaurant industry,” said Matthew Park, President and Interim CEO of Sustainable Restaurant Holdings. “In this environment, we simply are not able to generate sufficient revenue to meet our day-to-day and long-term obligations. As a result, during the last several weeks we diligently explored all available options to address our financial situation and preserve the long-term viability of SRH. We determined that using the Chapter 11 process to restructure our business is the best path forward. Among other things, it will allow us to obtain up to $1.9 million in new financing so that we can continue to operate and meet our business obligations while we pursue a sale of the business. Our goal is to emerge from this process as quickly as possible with a strengthened balance sheet and the necessary capital to rehire our furloughed employees and resume operations at our restaurants whenever it is safe to do so.”
In conjunction with the filing, SRH has received a commitment for up to $1.9 million in debtor-in-possession (DIP) financing led by the Bain Capital Double Impact fund. Subject to approval from the Court, the DIP financing, combined with the Company’s available cash, will provide sufficient liquidity for SRH to continue to compensate and provide benefits to its current employees and meet its post-Chapter 11 filing obligations to vendors and other business partners. “We are pleased Bain Capital stands with us in our mission to provide quality, sustainably sourced seafood to our customers, and continues to support the Company as we work to weather this unprecedented crisis,” said Mr. Park.
SRH intends to continue to operate its restaurants on the limited basis required by the COVID-19 pandemic. The Company remains committed to its goal of rehiring furloughed workers and resuming operations at its restaurants as soon as the health risks related to COVID-19 subside and government restrictions are lifted. In the interim, the Company continues to offer pickup and delivery at its NW, NE and Lake Oswego Bamboo Sushi locations in the Portland area.
“We greatly appreciate the efforts of our dedicated employees who are working hard to serve customers through takeout and delivery and providing an essential service to our communities,” said Mr. Park. “We also want to thank our many customers and vendors for your outreach and support since March. We recognize that Bamboo Sushi is an institution in Portland and we take that responsibility seriously. You have inspired us to continue fighting for this brand. We served about 500,000 meals in Portland last year and are working tirelessly to serve Green Machines and other signature dishes as we move through this unexpected crisis. We look forward to emerging from this process as a stronger company and continuing our business relationships for many years to come.”
Klehr Harrison Harvey Branzburg is serving as SRH’s legal counsel. SSG Capital Advisors is serving as the Company’s financial advisor.
About Sustainable Restaurant Holdings
Sustainable Restaurant Holdings is a collection of brands that are defining the future of hospitality through a deep commitment to environmental and social change. We make mindful business decisions that connect environmental impact, the prosperity of our team members and purveyors, as well as the enrichment of the communities we live in. We seek opportunities to create new concepts that inspire change by providing an innovative experience that meets the mind and enlivens the spirit. To order pickup or delivery from Bamboo Sushi’s NW, NE and Lake Oswego locations, please visit www.bamboosushi.com.