Operated 40 buffet style restaurants in seven southeastern states. The company had built up a strong brand centered around offering delicious, home-style food with a compelling value proposition for its customers. Barnhill’s financial position was weakened in 2006 by the repercussions of multiple hurricanes in its primary markets along with a general slowdown in the economy, higher gas prices and lower discretionary income for its core customers.
Brookwood advised Barnhill’s Buffet in its evaluation of strategic alternatives so that Barnhill’s would receive the capital infusion necessary for the company’s solvency and growth plan.
Nature of the Assignment – Brookwood was hired by Barnhill’s to explore a sale of the company. Brookwood contacted a select number of private equity groups and strategic buyers that would be interested in acquiring the company. Brookwood worked in concert with management and the financial sponsor to achieve a resolution for the company’s shareholders and creditors.
Excellent Result – Brookwood successfully sold 24 of the restaurants to a publicly traded restaurant company and renegotiated several leases in a section 363(b) asset sale under Chapter 11 of the United States Bankruptcy Code. Brookwood advised the company during its bankruptcy proceedings, assisting in rejecting the leases of the 16 weakest units.