MINNEAPOLIS — Granite City Food & Brewery Ltd. announced Tuesday, Dec. 17, that it has filed for Chapter 11 bankruptcy to reorganize its businesses, the company said in a press release.
In the meantime, the company is also pursuing a potential sale to KRG Granite Acquisition LLC for $7.5 million, plus some liabilities. That transaction remains subject to bankruptcy court approval and an auction process expected to end in February.
The casual dining restaurant group, which is headquartered in the Twin Cities suburb of Bloomington, made the filing Monday, Dec. 16, in the United States Bankruptcy Court for the District of Minnesota.
There are 25 Granite City restaurants in 13 states, with one in North Dakota at 1636 42nd St. S., Fargo. The corporation also operates four Cadillac Ranch All American Bar & Grill restaurants in four states.
Granite City opened its first restaurant in 1999 in St. Cloud, Minn. Other Minnesota Granite City restaurants are in Maple Grove, Roseville and Eagan. There is a Cadillac Ranch in the Mall of America in Bloomington.
In addition, there is a Granite City in Sioux Falls, S.D.
According to the press release, Granite City secured a $5 million debtor in possession loan, subject to Bankruptcy Court approval, to fund operations through the auction and sale process. Granite City is continuing to operate as a "debtor in possession" and its management expects to continue operations without interruption during the bankruptcy case.
"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," Granite City’s CEO and Chairman of the Board Richard H. Lynch said in the news release. "We believe pursuing this path will provide value to our creditors, enable one or more future restaurateurs to operate our locations, and preserve hundreds of jobs.”