Granite City Food & Brewery Ltd. Announces Continuing Efforts to Restructure Debt and Leases

Steven J. Wagenheim, Chief Executive Officer of the Company, stated: 'While we are beginning to see positive results from improved operating efficiencies, reductions of expenses and menu pricing strategies, sales have not improved over comparable periods in 2008, further weakening our cash position. We are continuing to seek ways to improve our debt structure and cash outflow attributable to equipment financing and capital leases. We are in discussions with various counterparties, including equipment financing lessors and landlords. To assist us in these efforts, we have engaged the firm of MorrisAnderson, Chicago, Illinois, which has a good track record in helping companies to restructure. The Company needs to restructure its debt and leases to survive this recession given the challenging operating environment in the casual dining segment. We believe that tenants throughout the country are seeking and getting relief in the form of forgiveness and reduced rent. If our landlords do not work with us and we are not successful in restructuring our debt, we may be in the position of other chains and forced to curtail or reduce the scale of our operations. Given that it has been difficult to raise capital in this economic environment, all options are under consideration.'

The Company's annual meeting of shareholders is scheduled for June 23, 2009 in Minneapolis.

Granite City Food & Brewery Ltd. is a Modern American upscale casual restaurant chain that operates 26 restaurants in 11 states.

Logos, product and company names mentioned are the property of their respective owners.

Reader Comments:

Be the first to leave a comment for this article

Tweet