Sustainable Restaurant Holdings (SRH), the parent company of seafood chains Bamboo Sushi and QuickFish, has filed for bankruptcy, seeking a new buyer for the struggling business.
The company has filed to restructure its business under Chapter 11 of the US Bankruptcy Code as it was unable to generate revenues to sustain the business amid the Covid-19 crisis, which severely restricted restaurant operations.
According to SRH, the Chapter 11 process will help the company to retain its value and initiate operations on a limited basis when Covid-19 restrictions are lifted.
Currently, the company seeks to procure new capital to support and restructure its business. It aims to complete the sale process in approximately 90 days.
SRH has also received a commitment of $1.9m in debtor-in-possession (DIP) financing led by the Bain Capital Double Impact fund.
It will help the company to compensate its current employees and meet post-Chapter 11 filing obligations to vendors and other business partners.
Sustainable Restaurant Holdings president and interim CEO Matthew Park said: “We are facing the same challenges as many other consumer-focused businesses, especially those in the restaurant industry.
“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.”
Meanwhile, the company aims to continue its limited operations as allowed under Covid-19 restrictions.