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. Apologies for the wall of text. I promise I had this nicely formatted in paragraphs in Notepad before pasting here.

  2. I believe that is incorrect Sir, the people's tax-dollars are NOT paying for the companies investment. Without the tax-break the company would be paying an ADDITIONAL $11.1 million in taxes ON TOP of their $22.5 Million investment (Building + IT), for a total of $33.6M or a 50% tax rate. Also, the article does not specify what the total taxes were BEFORE the break. Usually such a corporate tax-break is a 'discount' not a 100% wavier of tax obligations. For sake of example lets say the original taxes added up to $30M over 10 years. $12.5M, New Building $10.0M, IT infrastructure $30.0M, Total Taxes (Example Number) == $52.5M ININ's Cost - $1.8M /10 years, Tax Break (Building) - $0.75M /10 years, Tax Break (IT Infrastructure) - $8.6M /2 years, Tax Breaks (against Hiring Commitment: 430 new jobs /2 years) == 11.5M Possible tax breaks. ININ TOTAL COST: $41M Even if you assume a 100% break, change the '30.0M' to '11.5M' and you can see the Company will be paying a minimum of $22.5, out-of-pocket for their capital-investment - NOT the tax-payers. Also note, much of this money is being spent locally in Indiana and it is creating 430 jobs in your city. I admit I'm a little unclear which tax-breaks are allocated to exactly which expenses. Clearly this is all oversimplified but I think we have both made our points! :) Sorry for the long post.

  3. Clearly, there is a lack of a basic understanding of economics. It is not up to the company to decide what to pay its workers. If companies were able to decide how much to pay their workers then why wouldn't they pay everyone minimum wage? Why choose to pay $10 or $14 when they could pay $7? The answer is that companies DO NOT decide how much to pay workers. It is the market that dictates what a worker is worth and how much they should get paid. If Lowe's chooses to pay a call center worker $7 an hour it will not be able to hire anyone for the job, because all those people will work for someone else paying the market rate of $10-$14 an hour. This forces Lowes to pay its workers that much. Not because it wants to pay them that much out of the goodness of their heart, but because it has to pay them that much in order to stay competitive and attract good workers.

  4. GOOD DAY to you I am Mr Howell Henry, a Reputable, Legitimate & an accredited money Lender. I loan money out to individuals in need of financial assistance. Do you have a bad credit or are you in need of money to pay bills? i want to use this medium to inform you that i render reliable beneficiary assistance as I'll be glad to offer you a loan at 2% interest rate to reliable individuals. Services Rendered include: *Refinance *Home Improvement *Inventor Loans *Auto Loans *Debt Consolidation *Horse Loans *Line of Credit *Second Mortgage *Business Loans *Personal Loans *International Loans. Please write back if interested. Upon Response, you'll be mailed a Loan application form to fill. (No social security and no credit check, 100% Guaranteed!) I Look forward permitting me to be of service to you. You can contact me via e-mail howellhenryloanfirm@gmail.com Yours Sincerely MR Howell Henry(MD)

  5. It is sad to see these races not have a full attendance. The Indy Car races are so much more exciting than Nascar. It seems to me the commenters here are still a little upset with Tony George from a move he made 20 years ago. It was his decision to make, not yours. He lost his position over it. But I believe the problem in all pro sports is the escalating price of admission. In todays economy, people have to pay much more for food and gas. The average fan cannot attend many events anymore. It's gotten priced out of most peoples budgets.

ADVERTISEMENT