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Boulder restaurant group files multiple bankruptcy actions

BOULDER — On the heels of multiple restaurant closures, a Boulder restaurant group has filed six Chapter 11 bankruptcy cases with the federal bankruptcy court in Denver in hopes of reorganization prior to sale of assets.

Bighorn Restaurants LLC and Summit Restaurant Holdings LLC, which owns 100% of Bighorn, filed on Thursday. Related filings the same day included cases from Empire Restaurants LLC, Heartland Restaurants LLC, Atlantic Star Foods LLC, and Summit Restaurant Development LLC. All share the same 7480 Clubhouse Road address in Boulder. Dewey R. Brown is listed as CEO of all.

The company lists assets of between $1 million and $10 million and liabilities of between $10 million and $50 million. Exact asset and liability numbers were not yet available in the bankruptcy court system. Major unsecured creditors include restaurant food suppliers and multiple investors or financial institutions.

Summit is a Hardee’s restaurant franchisee. According to Nation’s Restaurant News, the company recently closed 39 restaurants and continues to operate 108. The restaurants still open are in Alabama, Florida, Georgia, South Carolina, Kansas, Missouri, Wyoming and Montana.

NRN reported that CKE Restaurants of Franklin, Tennessee, the franchisor for Hardees stores, said that Summit expects to enter into an asset purchase agreement with a buyer. There are 2,100 Hardees restaurants nationwide.

NRN also reported that Capstone Restaurant Group, which shares a phone number with Summit, closed three of its locations. 

Pandemic-related supply-chain and staffing shortages were said to be factors.

The court has scheduled a 10:30 a.m. Tuesday hearing to act on first-day motions.

The cases filed in U.S. Bankruptcy Court in Denver are: Bighorn Restaurants LLC and Summit Restaurant Holdings LLC, case numbers 23-11919 and 23-11921; Empire Restaurants LLC, 23-11922; Heartland Restaurants LLC, 23-11924; Atlantic Star Foods LLC, 23-11925; Summit Restaurant Development LLC, 23-11926.

Source: BizWest