IBJNews

Champps restaurants likely to survive parent's bankruptcy

Back to TopCommentsE-mailPrintBookmark and Share

The bankruptcy of a Kansas restaurant company has cast uncertainty over the future of its five Indianapolis-area restaurants—three Chammps Americanas and two Fox and Hounds.

Wichita, Kan.-based F&H Acquisitions Corp. said in court papers after filing for Chapter 11 in December that it wants to sell “substantially all” of its restaurants.

F&H operates Chammps locations in Circle Centre mall downtown, in Keystone at the Crossing and at Indianapolis International Airport. The Fox and Hounds are near Castleton and near U.S. 31 in Carmel.

F&H does not plan to close any restaurants as it reorganizes, spokesman Rick Van Warner said this week.

The company is trying to restructure its ownership and debt, ideally keeping some of the current owners on board, while keeping the restaurants themselves intact.

“We’re not piecemealing and selling off the companies, not these three restaurants here and these five restaurants here,” Van Warner said.

The restructuring process is “going along as expected,” he said.

Veteran retail broker Steve Delaney predicted the Chammps restaurants will survive, even if it’s under new ownership, but the future for the Fox and Hound locations is dicier.

“The Champps here in Indianapolis do real well. So I think they’re going hang in there,” said Delaney, a principal with Indianapolis-based Sitehawk Retail Real Estate. “The Fox and Hound is different.”

F&H, which owns and operates 101 restaurants in 27 states, was founded in Arlington, Texas, in 1994. The company has about 6,000 employees.

It operates 50 Fox and Hound units, 35 Champps locations, and 16 Bailey’s Sports Grilles. It franchises an additional 11 Champps locations.

In its Dec. 14 Chapter 11 filing, the company listed debt of roughly $119 million, including $68.4 million in first-lien secured loans; $39.8 million in second-lien secured loans; and $11.2 million to landlords, trade vendors and other unsecured creditors.

Circle Centre Mall LLC was named as an unsecured creditor with a claim of $52,731.39

“The recession has been a primary factor in the decline in the debtors’ sales, as consumers prioritized the savings of dining at home over eating out,” James Zielke, chief financial officer of F&H, said in a court filing.

F&H began seeking buyers in February to help it avoid bankruptcy. After contacting 164 banks and investors, the list of prospects was whittled down to five potential new owners. But no one bought.

In the fall, the company returned to its potential buyers in hopes of finding a stalking horse to set the minimum bid in a bankrupcy auction. Those meetings, again, did not produce anyone interested before the December court filing.

In the meantime, company sales have fallen. Revenue dropped 5 percent in the first nine months of 2013, to $218.8 million.
 

ADVERTISEMENT

  • No Cigars = No $
    Poor business decisions at Fox & Hound! Voluntarily becoming no smoking (in Carmel) is the death knell for a sports bar with pool tables. How many families are going to hang out, play pool and eat so-so food? Bring back the cigars (and cigs)!

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. The deductible is entirely paid by the POWER account. No one ever has to contribute more than $25/month into the POWER account and it is often less. The only cost not paid out of the POWER account is the ER copay ($8-25) for non-emergent use of the ER. And under HIP 2.0, if a member calls the toll-free, 24 hour nurse line, and the nurse tells them to go to the ER, the copay is waived. It's also waived if the member is admitted to the hospital. Honestly, although it is certainly not "free" - I think Indiana has created a decent plan for the currently uninsured. Also consider that if a member obtains preventive care, she can lower her monthly contribution for the next year. Non-profits may pay up to 75% of the contribution on behalf of the member, and the member's employer may pay up to 50% of the contribution.

  2. I wonder if the governor could multi-task and talk to CMS about helping Indiana get our state based exchange going so Hoosiers don't lose subsidy if the court decision holds. One option I've seen is for states to contract with healthcare.gov. Or maybe Indiana isn't really interested in healthcare insurance coverage for Hoosiers.

  3. So, how much did either of YOU contribute? HGH Thank you Mr. Ozdemir for your investments in this city and your contribution to the arts.

  4. So heres brilliant planning for you...build a $30 M sports complex with tax dollars, yet send all the hotel tax revenue to Carmel and Fishers. Westfield will unlikely never see a payback but the hotel "centers" of Carmel and Fishers will get rich. Lousy strategy Andy Cook!

  5. AlanB, this is how it works...A corporate welfare queen makes a tiny contribution to the arts and gets tons of positive media from outlets like the IBJ. In turn, they are more easily to get their 10s of millions of dollars of corporate welfare (ironically from the same people who are against welfare for humans).

ADVERTISEMENT