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 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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