Another national chain is in danger of closing, putting the future of a location in Zona Rosa Town Center in doubt.
Granite City Food & Brewery announced last week they started filing Chapter 11 bankruptcy in St. Cloud, Minn., to prepare for auctioning off the business and assets.
Granite City announced in a press release it has secured a $5 million loan to fund operations until an auction can be completed in February.
The current restaurants will continue through the bankruptcy process.
“The Granite City board of directors and management team have throughly assessed our strategic options and financial situation and unanimously agree that this structure sale process represents the best possible solution for the company,” said Richard H. Lynch, CEO of Granite City in a press release. “We believe pursuing this path will provide value to our creditors, enable one or more future restauranteurs to operate our locations and preserve hundreds of jobs.”
The company was founded in 1997 in Bloomington, Minn. Stock prices as of Thursday, Dec. 18 were a mere seven cents each. The company announced a possible sale to KRG Granite Acquisitions LCC for $7.5 million plus certain liabilities but the sale is subject to court approval and an auction process.
There are currently 25 Granite City locations throughout 13 states, including the one at 8461 NW Prairie View Road in Kansas City North as well two in Kansas — Kansas City and Olathe.
Granite City is known for its on-site brewery and weekend brunch.