Restaurants & Retail

For restaurants and retail stores and chains, the ability to continue sales, services and deliveries uninterrupted through legal challenges is critical. We are honored to have assisted several restaurants and retail establishments, and we are familiar with the issues they often face, including customer rewards card programs, factoring arrangements and other asset-based financing, inventory and borrowing-base issues, distribution channels, franchise agreements, equipment leases, personal guarantees and other issues.

In one example, we represented a famous downtown San Francisco restaurant in successfully reorganizing and remaining open without disruption. Although the issues were complex, including burdensome secured debt, competing rewards-card programs, disputed inventory and equipment valuations and a sale to the new general manager, we used a Chapter 11 bankruptcy case to achieve a significant reduction in debt that allowed the restaurant to open a new private-dining area and return to profitability.

In another example, we successfully reorganized a Thai takeout restaurant in a shopping mall in Chapter 11 by reducing the restaurant's debt and prosecuting and settling claims against third parties that had loaned funds to certain affiliates but obtained a guarantee from the restaurant. In a third example, we wound up and dissolved a restaurant out of court, achieving a smooth termination with minimal disruption to the owner.

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