Punch Bowl Social

Client Profile

Punch Bowl Social is a scratch-kitchen restaurant chain that combines high-end food and cocktails with social activities such as arcade games, bowling, karaoke, ping-pong and shuffleboard. The Company operates multiple locations across the U.S. and serves lunch, dinner, weekend brunch, late-night snacks, craft beer and cocktails in a modern and comfortable environment.  Founded in 2012, Punch Bowl experienced years of considerable growth and financial success. By early 2020, PBS’s footprint consisted of 20 restaurants and the Company earned significant recognition for its rapid growth and unique concepts.

Situation

Starting in March 2020, COVID-19’s impact across the dine-in restaurant industry led to the shutdown of all PBS locations. In response, PBS began restructuring its operations to stabilize the business, including permanently closing several locations and shifting to a take-out model. As regulatory conditions improved, PBS was able to re-open several restaurants under guidance from local governments, however, the re-opened locations were unable to operate at a profitable level due to continued occupancy and other restrictions. The Company filed for bankruptcy protection in December 2020 to secure the funding necessary to continue to operate on a limited basis, retain the value of its assets and explore available alternatives.

Solution

SSG was retained to conduct an expedited marketing process during the bankruptcy and solicit offers from potential strategic and financial acquirers. After extensive marketing and discussion with numerous interested parties, the stalking horse credit bid submitted by CrowdOut was determined to be the highest and best offer for substantially all the Company’s assets. SSG’s extensive Chapter 11 transaction experience and knowledge of the hospitality industry resulted in a process where value was maximized in an expedited time frame.