Second restaurant chain owned by ex-Panthers star and others files for bankruptcy

Catherine Muccigrosso
·3 min read
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Two restaurant chains owned by the same Charlotte company have now filed for bankruptcy protection within less than a month of each other.

Private equity firm Axum Capital Partners owns Wild Wing Cafe, which filed for Chapter 11 on July 19 under the limited-liability company Aetius Companies, The Charlotte Observer reported Thursday.

Wild Wing Cafe files for bankruptcy protection. Former Panthers star among its owners

And filings in federal court also show that Axum’s Back Yard Burgers filed for bankruptcy June 26 under the limited-liability company Tantum Companies. Both cases are filed in U.S. Bankruptcy Court for the Western District of North Carolina.

Former Carolina Panthers star wide receiver Muhsin “Moose” Muhammad II is a managing director at Axum. He also is listed as a manager at Aetius and Tantum, court documents show.

Back Yard Burgers, a fast-casual burger joint founded in 1987, at one time had several Charlotte-area restaurants. The last two, in Gastonia and Harrisburg, closed this year.

Back Yard Burgers and Wild Wings Cafe have struggled to recover from the pandemic, court documents show.

Axum declined to comment Monday on Back Yard Burgers’ bankruptcy, referring to court filings.

Back Yard Burgers and Wild Wings Cafe have struggled to recover from the pandemic, court documents show. Both chains have filed for bankruptcy protection.
Back Yard Burgers and Wild Wings Cafe have struggled to recover from the pandemic, court documents show. Both chains have filed for bankruptcy protection.

What happened to Back Yard Burgers?

Back Yard Burgers struggled during the pandemic, like other restaurants including Axum’s Wild Wing Cafe, with “unprecedented” disruptions and has been unable to recover financially, Mark Cote, CEO of Tantum and Aeitius Aetius, said in the court filing.

However, Cote said recent restructuring actions are already seeing positive results. Among the changes are: moving Back Yard Burgers headquarters from Nashville to Charlotte, hiring experienced operations management and closing nonprofitable stores.

However, the Chapter 11 reorganization is necessary because Tantum has been “unable to address the significant accounts payable debt that built up during the pandemic,’ Cote said.

Back Yard Burger’s bankruptcy filing

Tantum has over $1 million to $10 million in assets, and estimated liabilities at $10 million to $50 million, the 40-page bankruptcy filing petition shows.

Among Tantum’s largest unsecured creditors claims are Tennessee Department of Revenue for $671,882, Mississippi State Tax Commission for $348,800, Gordon Food Service in Michigan for $232,024 and Primax Properties in Charlotte for $226,941.

Tantum has an outstanding balance of $10.8 million on a $10.4 million loan with Guaranty Bank and Trust Co., court filings show.

The loan was secured in December 2020 through the Main Street Lending Program established by the Federal Reserve for small- and medium-sized businesses impacted by the pandemic, the filing shows.

Tantum also owes $1.8 million in equipment loans to Guaranty Bank and $185,378 on a Guaranty Bank credit card, according to the court documents.

Tantum has about 254 employees at five corporate-owned Back Yard Burgers in Mississippi and Tennessee, court filings show. The company has about 14 franchise restaurants in eight Southern and Midwestern states, including one in Raleigh, its only North Carolina store.

Hamilton Stephens Steele + Martin of Charlotte is the attorney representing both Back Yard Burger and Wild Wing Cafe in the bankruptcies.

Charlotte Business Journal reported about Back Yard Burgers’ bankruptcy on Friday.

Back Yard Burgers’ history

This is the second bankruptcy protection filing for Back Yard Burgers, founded in 1987.

The first Chapter 11 was filed in 2012, according to several industry news outlets, before Axum owned it.

Axum purchased Back Yard Burgers in 2017, when the fast-casual burger chain had 32 franchised and 23 company-owned restaurants in 11 states.

Back in 2008, the chain had more the 170 restaurants, mostly in the South, including at least seven in Charlotte, plus Concord, Fort Mill, South Carolina, and Rock Hill.

Just four years ago, Back Yard Burgers had 50 stores in 11 states, according to company information online.

A hearing with creditors is scheduled next month at the Charles Jonas Federal Building in Charlotte.