Bain Capital Double Impact Fund committed up to $1.9 million in debtor-in-possession financing to Sustainable Restaurant Holdings, which 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.
“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,” Matthew Park, president and interim CEO of Sustainable Restaurant Holdings, said.
Sustainable Restaurant Holdings 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 COVID-19 restrictions are lifted. During the restructuring, the company plans to launch a process with the goal of finding new capital. The company expects to complete the sale process in approximately 90 days.
Subject to approval from the court, the DIP financing, combined with the Sustainable Restaurant Holdings’ available cash, will provide sufficient liquidity for the company 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 facing the same challenges as many other consumer-focused businesses, especially those in the restaurant industry,” Park said. “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.”
Klehr Harrison Harvey Branzburg is serving as Sustainable Restaurant Holdings’ legal counsel. SSG Capital Advisors is serving as the company’s financial advisor.
Sustainable Restaurant Holdings is the Oregon-based operator of Bamboo Sushi and QuickFish.
