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

A Charlotte restaurant chain known for its wings and live music has filed for bankruptcy after abruptly closing some of its restaurants this year.

Wild Wing Cafe, owned by private equity firm Axum Capital Partners, filed for Chapter 11 bankruptcy on July 19 in the U.S. Bankruptcy Court for the Western District of North Carolina under the limited-liability company Aetius Companies.

Former Carolina Panthers star wide receiver Muhsin Muhammad II is a managing director at Axum. He also is listed as a manager at Aetius, filings show.

Aetius has $10 million to $50 million in assets, and estimated liabilities at $10 million to $50 million, the 60-page bankruptcy filing petition shows.

The chain continues to struggle with recovering from the pandemic and restaurant industry challenges, Axum said in a statement emailed to The Charlotte Observer Thursday. “We believe the strongest future for the chain will happen through a court restructuring,” the company said.

Charlotte Business Journal reported about the bankruptcy earlier Thursday.

Wild Wing Cafe’s bankruptcy filing

Among Aetius’ largest unsecured claims are Sysco Columbia for $2.8 million, N.C. Department of Revenue for $904,705, Cigna HealthCare for $747,714 and Sysco Charlotte for $600,497.

Aetius lists 255 employees, of which 188 are part-time or hourly, and 67 are full-time or salaried employees in the court filings for six company-owned Wild Wing Cafe restaurants and the corporate office. The number does not include franchise locations.

Hamilton Stephens Steele + Martin of Charlotte is the attorney representing Wild Wing Cafe in the bankruptcy.

What happened to Wild Wing Cafe?

The pandemic was “extremely challenging” for Wild Wing Cafe business, like other restaurants, Aetius CEO and President Mark Cote said in court filings.

Issues the business faced, filings stated, included leases, management turnover, inflation, supply chain constraints, tight labor market, wage inflation and government-mandated store closures.

“Operational control and management effectiveness were disrupted and exposed the company to weaknesses that were not previously identifiable, and the consequences impacted its financial stability,” Cote said.

But Cote said operational changes now underway are showing positive results.

Wild Wing Cafe restructuring includes hiring experienced management with expertise in operations, supply chain and franchising, and closing unprofitable stores.

However, because of its debt, the Chapter 11 filing is necessary, Cote stated.

Aetius defaulted on a $12.5 million loan with HomeTrust Bank. 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.

Aetius also has a U.S. Small Business Admission loan for $500,000, secured in March 2022.

Wild Wing Cafe signs of trouble

There were signs the chicken wing sports bar was on shaky ground.

In February, Wild Wing Cafe closed two Carolina stores, one at Ayrsley in Steele Creek and the chain’s first store on Hilton Head Island. In March, the Wild Wing Cafe in Rock Hill closed after its late 2021 opening. Other stores also have closed, including a Columbia location.

Wild Wing Cafe is known for entertainment like karaoke and live music. Artists like Hootie & The Blowfish and Charlotte’s DaBaby performed at Wild Wing Cafe’s early in their careers.

Just two years, Wild Wing Cafe said it planned to double the number of its locations over the next five years. At that time, there were over 40 locations in eight Southern states.

Now, there are 27 cafes open in seven Southern states, according to the company’s website.

There are four stores in North Carolina at University City in Charlotte, Gastonia, Raleigh and Asheville. There are six stores in South Carolina at Anderson, Bluffton, Columbia The Vista, Greenville, Charleston and North Myrtle Beach.