Punch Bowl Social files for bankruptcy after Covid devastates his business

Punch Bowl Social declared bankruptcy for Chapter 11 on Monday, after the coronavirus pandemic devastated its business.

In February, the once-lively eatertainment chain seemed to be the future of the restaurant industry, offering arcade and karaoke games along with food and drink. Cracker Barrel invested $ 140 million in a stake in the company last year, and the Punch Bowl had grown to 20 locations until the blockades went into place in March.

The crisis has evaporated its customer base, and Cracker Barrel opted to consolidate its liquidity in March, instead of helping the Punch Bowl stay afloat.

CEO Robert Thompson, who founded Punch Bowl in 2012, left the company in the midst of the pandemic. Its main creditor, CrowdOut Capital, became a partial owner and hired a new CEO: John Haywood, who earned a reputation as a change specialist.

Punch Bowl has debts between 10 and 50 million dollars, according to the bankruptcy claims. He owes more than $ 10 million for a payment protection loan to JPMorgan Chase, its main creditor. Most of its other creditors are tenants from its locations throughout the country.

The company is the latest in a flood of restaurants and retailers seeking protection from bankruptcy during the pandemic, including the parent company of Chuck E. Cheese, Ruby Tuesday and J. Crew. Bankruptcy experts have predicted a new stream of cases after the holidays.