The group behind Hawk ’n’ Dove, Molly Malone’s, The Chesapeake Room, and six other restaurants filed for Chapter 11 bankruptcy on Friday.
“Since August, 2013, margins have declined significantly,” said the business’ managing member William Nimmo in a press release. “After careful consideration of available alternatives, we determined that a Chapter 11 filing was a prudent and necessary step to maintain and enhance operations and allow for a successful restructuring.”
Barrack’s Row Ent. Group LLC and its nine subsidiaries—Hawk ’n’ Dove, Boxcar Tavern, The Chesapeake Room, Lola’s, Pacifico Cantina, Senart’s Oyster & Chop House, Molly Malone’s, Park Tavern, and yet-to-open Willie’s Brew and Que—all filed petitions with D.C. Bankruptcy Court on March 28. All report debt between $1 million and $10 million, except for Willie’s Brew and Que, which listed debts from $0 to $50,000.
The restaurants are expected to continue operating as normal, according to the press release. Nimmo says the restaurant group plans “to further expand with Willie’s BBQ and enhancements to our existing locations.”
Restaurateur Xavier Cervera sold the restaurants last year to the current restaurant group, whose ownership is led by his brother Richard Cervera, formerly CEO of the Taco Cabana chain.
Read more in the press release below.
Barrack’s Row Ent. Group, LLC Files for Bankruptcy Under Chapter 11 of the United StatesBankruptcy Code
Washington, DC — Barrack’s Row Ent. Group, LLC announced today that in an effort to address and reorganize certain structural debt issues, it and its operating subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United StatesBankruptcy Court for the District of Columbia.
The Companies’ bar and restaurant operations are expected to continue as normal and staff, food, liquor vendors and suppliers will be timely paid going forward throughout the bankruptcy process as it works to reorganize its debt structure.
“Since August, 2013, margins have declined significantly. After careful consideration of available alternatives, we determined that a Chapter 11 filing was a prudent and necessary step to maintain and enhance operations and allow for a successful restructuring,” said William Nimmo, Managing Member of Barrack’s Row Holdings LLC.
The reorganization will be supervised by part-owner and CEO, Richard Cervera, a leading restaurateur and former CEO of the Taco Cabana chain, as well as Founder and CEO of Edun Ltd, the parent company of the Edun brand of sustainably made clothing co-founded by Bono and Ali Hewson. “Richard is one of the most experienced and knowledgeable individuals in the restaurant industry, developed a cutting edge brand in Edun, and has even worked to enhance a venerable leading restaurant in Napa Valley. He has our full confidence to build on the great things we’ve got going while reordering the debt side of the house,” continued Nimmo.
“This reorganization will allow us to refocus our efforts on what is needed most: a rededication to quality food and a neighborhood atmosphere that reflects the unique nature of Capitol Hill and our loyal customer base of families, Hill staffers, neighbors and Nat’s fans looking to eat and drink before or after attending a home game. We have opened Hawk n’ Dove, as well as Park Tavern over the past year, and look to further expand with Willie’s BBQ and enhancements to our existing locations,” said Nimmo.
Our restaurants will all carry on business as usual, though we will utilize the bankruptcy process to make improvements where needed in all aspects of operations. We expect to emerge from this restructuring intact and with a manageable balance sheet. On behalf of the entire ownership and management team, I want to thank our customers and vendors for their continued loyalty during this process and to recognize the dedicated team members whose continued support and commitment have been and remain crucial to the future success of our local businesses,” said Nimmo.
Photo by Darrow Montgomery