HopCat Owners File for Bankruptcy
The year 2020 has been a tough year for many restaurants and breweries. They have had to be closed for any dine-in customers, and only allowed to operate with take out and delivery orders. Many have found it hard to survive with such limited business opportunities.
The parent company for HopCat, Stella's Lounge, and the Grand Rapids Brewing Company -- BarFly Ventures -- filed for bankruptcy restructuring on Wednesday morning. The bankruptcy filing states that the company has $50 million or less in liabilities.
In a press release, owner Mark Sellers said, "As is the case with most restaurants, BarFly has faced a number of challenges in recent years, including increased industry competition and craft beer saturation. However, we were meeting these challenges, and operationally the business was sound until the recent global pandemic pushed us into an unforeseen economic crisis and a 100% drop in revenue for almost three months. After an exhaustive examination of all options, we've determined that the Chapter 11 process is the best path forward to enable BarFly to focus on continued growth and transformation for the future."
HopCat first opened in Grand Rapids in 2008. Since that time they have expanded to 14 locations. According to their website, there are HopCats in Michigan in the cities of Ann Arbor, Detroit, Holland, Kalamazoo, Lansing, and two in Grand Rapids (downtown and on the East Beltline). There are also locations in Indianapolis, IN; Kansas City, MO; Lexington and Louisville, KY; Lincoln, NE; Madison, WI; and Minneapolis, MN.
Grand Rapids Brewing Company and Stella's Lounge are both located in downtown Grand Rapids.
The restaurants are planning to continue operations and hope to re-open their Michigan locations on June 13th. Restaurants in Lincoln, NE and Indianapolis, IN will reopen June 22nd.
During the bankruptcy process, BarFly Ventures says they will continue to honor gift cards and rewards programs.