The company has cited Covid-19 as the reason for its downfall as it has ‘destroyed its business’.
Punch Bowl Social had a bright future ahead in the hospitality industry, with the ‘eatertainment’ chain bringing together arcade games, bowling and karaoke along with delicious food and signature cocktails. Cracker Barrel had invested around $140M in a stake of the company last year, allowing the brand to grow to 20 locations. The brand has been devastated and investor Cracker Barrel has decided to shore up its own liquidity rather than reviving the chain.
Punch Bowl is not alone in seeking bankruptcy protection. A number of retailers and other brands have filed for Chapter 11 as a result of the pandemic and its lasting impacts. The brand currently has liabilities of between $10 – $50M, according to bankruptcy filings. It owes more than $10M for a PPP loans to JP Morgan Chase, which is the brands top creditor.
