The Denver-based chain Punch Bowl Social filed for Chapter 11 bankruptcy protection Monday after closing nearly all of its 20 locations during the COVID-19 pandemic.
In the filing, the 8-year-old company reported between $10 million and $50 million in liabilities to between 200 and 999 creditors. It reported the same estimated amount in assets.
Punch Bowl Social did not respond to requests for comment but told Restaurant Business that it had no knowledge of the filing and was unsure of its legality.
“The company had no advance knowledge in regards to this filing by two former executives,” the statement to Restaurant Business said. “We are unsure at this time if the filing is even legal, and our secured lender, CrowdOut, and legal counsel are currently working to resolve this issue.”
Prior to the pandemic, Punch Bowl Social recorded seven consecutive years of growth. The popular chain offers high-end food, drinks and a wide variety of games including ping pong, virtual reality, skee ball and bowling.
In July 2019, Cracker Barrel invested $140 million into Punch Bowl Social but by March, Cracker Barrel decided to end any future investments to concentrate resources on its core business during the pandemic.
Soon after, CEO Robert Thompson, who founded Punch Bowl Social in 2012, left the company.
CrowdOut became a partial owner of Punch Bowl Social, replacing Thompson with John Haywood, former CEO of Souplantation and Sweet Tomatoes which closed completely during the pandemic, filing for Chapter 7 bankruptcy.
Punch Bowl Social’s Denver location at 65 Broadway closed on Nov. 20.
According to Punch Bowl Social’s website, locations are still operating in Austin, Texas; Arlington, Va.; and Atlanta. The website claims 11 more locations throughout the country, including Denver, will reopen soon.
A hearing for the bankruptcy is set for Wednesday, according to Restaurant Business.