Steak 'n Shake is exploring a possible bankruptcy to handle its debt liabilities as COVID-19 continues to thrash the restaurant business, according to sources who spoke to Bloomberg.
What Happened: The Indianapolis-based burger chain has hired FTI Consulting to advise on restructuring Steak 'n Shake’s debt, including a $153 million loan due in March. Law firm Latham & Watkins LLP also also is helping the company.
The firms could move to put Steak 'n Shake in bankruptcy this coming week.
Parent company Biglari Holdings Inc (NYSE: BH) has said that it may refinance or pay off the debt. However, the company is also mulling an out-of-court settlement.
Why It Matters: Burdened with debt amid the COVID-19 pandemic, the food chain closed 82 restaurants in 2020.
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