Ignite Restaurant Group Inc., headquartered in Houston, is preparing to file for bankruptcy. Ignite Restaurant operates the Joe’s Crab Shack and Brick House Tavern restaurant chains.
Sources familiar with the matter suggest the company could file as early as the week of May 15, 2017. Ignite reported declining sales in the most recent quarter, with comparable-restaurant revenue falling by 6.8%. The company’s debt totals approximately $121 million.
Ignite announced in early April 2017 that it was examining a possible sale with financial advisor Piper Jaffray Cos. Additionally, strategic and private equity buyers are considering purchasing the company out of bankruptcy, according to one of the sources.
As of early 2017, Ignite operated 112 Crab Shacks and 25 Brick House Taverns across the country.
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