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. By Mr. Lee's own admission, he basically ran pro-bono ads on the billboard. Paying advertisers didn't want ads on a controversial, ugly billboard that turned off customers. At least one of Mr. Lee's free advertisers dropped out early because they found that Mr. Lee's advertising was having negative impact. So Mr. Lee is disingenous to say the city now owes him for lost revenue. Mr. Lee quickly realized his monstrosity had a dim future and is trying to get the city to bail him out. And that's why the billboard came down so quickly.

  2. Merchants Square is back. The small strip center to the south of 116th is 100% leased, McAlister’s is doing well in the outlot building. The former O’Charleys is leased but is going through permitting with the State and the town of Carmel. Mac Grill is closing all of their Indy locations (not just Merchants) and this will allow for a new restaurant concept to backfill both of their locations. As for the north side of 116th a new dinner movie theater and brewery is under construction to fill most of the vacancy left by Hobby Lobby and Old Navy.

  3. Yes it does have an ethics commission which enforce the law which prohibits 12 specific items. google it

  4. Thanks for reading and replying. If you want to see the differentiation for research, speaking and consulting, check out the spreadsheet I linked to at the bottom of the post; it is broken out exactly that way. I can only include so much detail in a blog post before it becomes something other than a blog post.

  5. 1. There is no allegation of corruption, Marty, to imply otherwise if false. 2. Is the "State Rule" a law? I suspect not. 3. Is Mr. Woodruff obligated via an employment agreement (contractual obligation) to not work with the engineering firm? 4. In many states a right to earn a living will trump non-competes and other contractual obligations, does Mr. Woodruff's personal right to earn a living trump any contractual obligations that might or might not be out there. 5. Lawyers in state government routinely go work for law firms they were formally working with in their regulatory actions. You can see a steady stream to firms like B&D from state government. It would be interesting for IBJ to do a review of current lawyers and find out how their past decisions affected the law firms clients. Since there is a buffer between regulated company and the regulator working for a law firm technically is not in violation of ethics but you have to wonder if decisions were made in favor of certain firms and quid pro quo jobs resulted. Start with the DOI in this review. Very interesting.

ADVERTISEMENT