Second Wave of Restaurant Chain Bankruptcy Filings Could Offer New Opportunities  

Anyone who has worked the back of the house at a popular restaurant knows how chaotic the kitchen can feel during a restaurant “rush” hour—knives, spoons, and spatulas being swung around, glassware flying, line cooks and sous chefs furiously plating food and sending it out. The same intensity will also mark what the restaurant bankruptcy “industry” as a whole will experience in the second half of 2020, through at least, the middle of 2021.  But, out of the haze of bankruptcy filings, there will be some golden opportunities for a savvy PE firm or other restaurant chains with an appetite for a good deal.

A Little HistoryIt should be noted that pre-COVID, restaurant chain Chapter 11 or 7 bankruptcy filings were on the rise despite a strong economy. In 2019 alone, companies seeking bankruptcy protection included Perkins, Houlihan’s, Restaurants Unlimited (multiple locations including Kincaid’s and Palomino), Kona Grill, Granite City, and The Palm. There were multiple…