We’re not really known as a takeout delivery type of operation,” Sellers said of the tiki restaurant, which is also moving through Chapter 11 bankruptcy restructuring. “We’re known as a dine-in kind of atmospheric experience. Meanwhile Max’s business is down about 85% from a year ago, according to Sellers. His original venture, HopCat, went through bankruptcy, was repossessed by the bank and sold to another company. The pandemic has also been tough on Sellers’ restaurants.
HOPCAT GRAND RAPIDS HOURS KITCHEN FREE
“This was just a perfect opportunity to help ourselves learn the recipes better and to give free food to people that help us out all year round.” “They’ve been on the frontlines of this pandemic for 10 months now,” he added.
This is much-needed good news for the local community and restaurant industry as a whole.Grand Rapids tiki bar owner files for Chapter 11 bankruptcy “We intend for these restaurants to succeed and very much believe the company can return to growth as the pandemic subsides. “HopCat, Stella’s and Grand Rapids Brewing Company are important to both Grand Rapids and the state of Michigan,” said Nick Meserve, managing director of Main Street, in a statement. However, the new owners said BarFly is preparing for a turnaround. However, underperforming locations shuttered and the COVID crisis worsened the trend. The chain’s expansion was financed by debt instead of cash to accelerate growth. We are also thankful for our loyal guests and teammates-and vendor and landlord partners who have been working hard to make our progress possible.”īarFly was founded 12 years ago when HopCat first opened in Grand Rapids, Michigan. We think it’s a great fit for the company, and the energy and collaboration they bring will only enhance our recovery and growth. The whole management team and I are very excited about the new owners. “The company has continued to improve operating results in a difficult environment by focusing on keeping our team and guests safe, improving our off-premise sales, and reconstructing our business as the marketplace expands and allows. “Over the last several months, the home office support team, general managers, and restaurant team members have worked hard to reopen the restaurants and stabilize the company,” said Ned Lidvall, CEO of Project BarFly.
Baldwin said BarFly is renewing efforts to focus on off-premises sales and restoring hours of operations across each of the 11 locations. The company entered court proceedings with more than $30 million in debt.Īccording to MLive, HopCat attempted takeout, but the switch to off-premises wasn’t breaking even. He told the Michigan House of Representatives Regulatory Reform Committee at the time that his company was evicted from one HopCat location and was in default at other stores. State and local restrictions forced a 100 percent drop in revenue for three months. He said BarFly was meeting those challenges until the COVID pandemic arrived. When BarFly filed for bankruptcy in June, founder Mark Sellers attributed the company’s decline to an increase in competition and saturation of the craft beer market. Our goal is to focus efforts around the company’s key markets and ensure HopCat, Stella’s, and Grand Rapids Brewing Company remain a thriving part of these communities.” “We strongly believe in each restaurant concept and intend to return the company’s focus to providing a unique, best-in-class customer experience. “We know the business extremely well from our experiences over the last five years,” Travis Baldwin, founder of Congruent, said in a statement. BarFly Ventures, parent of HopCat, Stella’s Lounge, and Grand Rapids Brewing Company, has emerged from bankruptcy, selling for $17.5 million to private investment firms Congruent Investment Partners and Main Street Capital.Ĭongruent and Main Street, previously lenders to the company, will operate 11 units under the name Project BarFly LLC.
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