It looks like the so-called restaurant recession is continuing. The owner of Joe’s Crab Shack is reportedly preparing for bankruptcy.
The news comes from Bloomberg, which cited people familiar with the matter. The owner is Ignite Restaurant Group Inc. and they also own Brick House Tavern.
The company said last month that it was pursuing various options, including a possible sale. Ignite restaurants have recorded declining sales in recent months, with revenue falling by 6.8 percent. According to Bloomberg, the company’s debt is around $121 million, which includes a $112 million loan set to mature in 2019. The company’s CEO also resigned last month, which is never a good sign.
There were roughly 112 Joe’s Crab Shacks and 25 Brick House Taverns around the country as of January, according to Bloomberg. The company sold 150 Macaroni Grill locations in 2015.
Joe’s Crab Shack, which was founded in 1991, isn’t the only sit-down restaurant chain that’s struggling. There are a handful of others, including Chili’s and Outback Steakhouse.