CBRL - Punch Bowl Social Facing Foreclosure as Cracker Barrel Gives Up on the Concept
For Denver-based restaurant concept Punch Bowl Social, the economic shutdown caused by the COVID-19 pandemic may be too much to handle. After the restaurant closed all locations and laid off its workers, creditors provided notice to parent company PBS Holdco declaring a default on its credit facility. Cracker Barrel (NASDAQ: CBRL) owns 58.6% of PBS Holdco.
PBS Holdco's creditors asked that Cracker Barrel pay what was due and guarantee future repayment of debt. However, in an SEC filing from March 25, Cracker Barrel stated it's walking away from its Punch Bowl Social investment, leaving it with a bleak outlook.
Image source: Cracker Barrel.