A beloved fast Food Chain now files an unexpected bankruptcy after claiming between $10 and $50 million in debt.
Before the pandemic, Wild Wing Café had plans to triple in size to over 100 locations.
Its problems, however, started with a decision made by its former CEO, reports TheStreet.
Now the company has been led to close several of its establishments.
“In 2021, then-CEO Steve Weigel said that the company was not betting on off-premises (even though that is the direction the restaurant industry was going), because they are an in-person experiential concept,” Nation’s Restaurant News originally reported.
However, the industry has pivoted since the covid pandemic.
A number of the chain’s 33 locations have since closed, in many cases abruptly.
The company’s original location in Hilton Head, S.C., and a store in Blufton, S.C have also shuttered.
And on Thursday February 29, Wild Wing Café’s Charleston, S.C. location closed as well.
“This letter is to inform you that due to business closing, it is with regret we need to inform you we’re terminating your employment with Wild Wing Cafe,” the termination email sent to employees reads.
“This layoff action is indefinite in duration and should be considered permanent,” ABC News 4 reported.
The chain’s website does not reflect every closure or restaurants that have closed in North Carolina and other markets.
At least 16 of the company’s restaurants have been shut down and the company has not shared any updates on the status of its attempt to reorganize.
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Also Read: A New Wave of Unexpected Layoffs Now Hits Wisconsin
Other Economy and Bankruptcy News Today
A giant Amazon seller now declares an unexpected bankruptcy, part of a restructuring agreement with lenders to slash its debt.
Walpole, Massachusetts-based Thrasio is asking the court to oversee a restructuring agreement with lenders, which will allow it to cut about $495 million in debt and defer its interest payments for a year after it exists bankruptcy.
The third-party seller for Amazon filed for Chapter 11 bankruptcy protection in a New Jersey court on Wednesday, reports ABC News.
Thrasio is what is known as an Amazon aggregator, companies that buy other, smaller Amazon sellers, the independent businesses responsible for the majority of sales on the dominant e-commerce platform.
Aggregators raised large sums from investors seeking to cash in from Amazon sellers as online sales boomed during the COVID-19 pandemic.
But that growth slowed as the pandemic eased and shoppers began to purchase more items in person, or shifted their spending toward other things, like traveling and dining.
Last year, another Amazon aggregator, Benitago, filed for bankruptcy.
In its filing, Thrasio said it has received commitments of up to $90 million in new financing from lenders.
The company is listing up to $10 billion in assets and up to $1 billion in liabilities.
“Thrasio is one of the largest third-party sellers on the Amazon marketplace, and with a strengthened balance sheet and new capital, we will be better equipped to support our brands, scale our infrastructure and enable future opportunities,” CEO Greg Greeley said in a statement.
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Also Read: This Massive Restaurant Is Now Closing 41 Locations
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