In October, a group of 29 Applebee’s Grill and Bar locations across Wisconsin filed for bankruptcy. Less than a month later, their operator asked the bankruptcy court to dismiss the case. This quick reversal of fortune has everything to do with financing, something the Hanson & Payne team has a lot of experience with.
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Seenu Kasturi is the president of Wisconsin Apple, the holding company that owns the Applebee’s in question. He is also the CEO of ARC Group, which owns and operates the Dicks Wings & Grill casual-dining chain, and is the parent entity of a holding company named ARC Fat Patty’s LLC, which owns and operates the Fat Patty’s chain of burger joints.
Shortly after Wisconsin Apple filed for bankruptcy, ARC Fat Patty’s acquired Wisconsin Apple’s debt from financier Bremer Bank National Association. Now that this new financial arrangement is in place, and Wisconsin Apple is purportedly in a better position to take on the financial challenges posed by the pandemic, Kasturi is asking that the bankruptcy case be dismissed.
“Throughout an extremely challenging environment, our focus was always on our guests and team members, specifically protecting hundreds of jobs,” Kasturi said in a statement to the Milwaukee Business Journal. “We took the extraordinary step to file, since we were left with no other options. With significant effort from Dine Brands [the parent company of the Applebees brand] in facilitating a dialogue with our lender, we were able to reach an amicable resolution and work towards dismissing the bankruptcy.”
Financing Is Key In Many Milwaukee Area Bankruptcies
The Wisconsin Apple bankruptcy made headlines because Applebee’s is such a well-known brand, and the pandemic played a part in this story, but the behind the scenes financial issues outlined above are fairly run-of-the-mill.
Our firm’s experience representing troubled companies means we have advised companies seeking new financing, restructuring their current financing, or buying and selling part or all of a distressed business. Whether the goal is staying afloat or winding down operations, we can provide assistance.
Hanson & Payne also represents banks and other commercial lenders and borrowers from across the state of Wisconsin in a wide range of transactions, including commercial loan transactions, bankruptcy matters, and insurance issues. We have extensive experience securing and realizing upon wide-ranging forms of collateral, which allows our clients in the Milwaukee area and beyond to broaden their commercial loan portfolios and better secure them at the same time.
Milwaukee Bankruptcy Lawyers Business Owners & Banks Can Rely On
Hanson & Payne, LLC is a trusted advisor to businesses and lenders in the Milwaukee area. We have a reputation for being business-minded and financial-savvy in an industry that is often criticized for not understanding that legal action is a means to an end, not an end in and of itself. If you are looking for legal counsel in this challenging time, we would be honored to take your call. Contact us today to schedule an initial consultation.