F&H Acquisition Corp., which owns the Fox & Hound and Champps sports bar and restaurant chains, filed for bankruptcy Monday, citing a slump in sales as a result of the U.S. economic downturn.
F&H, based in Wichita, Kan., operates about 101 sports bars and casual family-dining restaurants in 27 states, including Champps restaurants in Schaumburg, Lincolnshire and Lombard, and Fox & Hound pubs in Arlington Heights, Schaumburg, Carol Stream and Aurora. The company employs about 6,000 people, according to the Chapter 11 filing in Wilmington, Del.
The company listed debt of $119 million.
"The recession has been a primary factor in the decline in the debtors' sales, as consumers prioritized the savings of dining at home over eating out," James Zielke, chief financial officer of F&H, said in a court filing.
F&H plans to try and sell the company, Zielke said. The company had received eight initial indications of interest when it proposed a sale in February, he said.
Discussions with the parties, and nine possible new buyers contacted in October, failed to produce a stalking horse bidder, Zielke said. Stalking horse bids set a minimum price for a court-supervised auction.