Joe's Crab Shack Parent Files For Bankruptcy

(RTTNews) - Casual dining chain Joe's Crab Shack has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas.

As per the bankruptcy filing, Joe's is planning to sell the company for around $50 million to a private equity firm. The company said a few of the interested bidders withdrew their offers as the situation worsened and that's why it is going for Chapter 11 filing.

The filing said it has more than 5000 creditors on a consolidated basis and assets of around $153 million, while liabilities comes to about $197 million.

The filing will be applicable for Ignite Restaurant Group Inc., RSC LLC, Joe's Crab Shack, Maryland, JCS Monmouth Mall, NJ, JCS Development, LLC, Joe's Crab Shack, Anne Arundel, LLC, BHTT Entertainment, LLC, Brick House Development, LCC and Ignite Restaurants, New Jersey, LLC.

The Houston based Ignite Restaurant Group operates the chain. The dining business in two restaurant brands have been falling and Ignite has started closing weaker locations to curb further damage.