By Peter Romeo
The Bar Louie pub chain has filed for Chapter 11 bankruptcy protection after closing 38 of its 134 locations. Luckily, the company’s Tustin location is a top producer for the group of over 300 and remains open.
The brand, a holding of Sun Capital Partners, said the filing will facilitate the operation’s acquisition by one of three suitors that submitted letters of intent last month. Those parties were not identified in this morning’s bankruptcy filings.
Simultaneous with the filing, Bar Louie announced that its lenders have agreed to serve as a “stalking horse” bidder, meaning they will acquire the company at a rock-bottom price unless a higher offer is submitted. In exchange for setting a floor for the bidding, the stalking horse’s fees are paid by the acquired concern if another suitor should prevail.
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