Famous Nashville Hot Chicken Restaurant Files For Bankruptcy

The Nashville-based hot chicken restaurant business Party Fowl has submitted a petition for protection under Chapter 11 of the United States Bankruptcy Code.

Party Fowl, a Nashville hot chicken restaurant, files for bankruptcy.

A petition for protection under the bankruptcy laws was submitted by the owners on January 9 in the United States Bankruptcy Court for the Middle District of Tennessee, as stated in the court records that were submitted to the court after the petition was filed. Because the company has expanded its operations throughout Tennessee and beyond, as well as the financial impact that COVID-19 has had on these newly acquired locations, this decision has been made.



Famous Nashville Hot Chicken Restaurant Files For Bankruptcy
Famous Nashville Hot Chicken Restaurant Files For Bankruptcy

In the year 2014, Austin Smith and Nick Jacobson opened a restaurant in the Gulch that would later become known as Party Fowl. According to the official website of Party Fowl, the proprietors of this restaurant established it with the intention of “bringing together the best of Nashville under one roof by combining great food, great drinks, and a great experience.” They are currently in charge of roughly 225 personnel and have expanded their business by establishing six limited liability companies.




In addition, the court filings mentioned that Smith and Jacobson decided to expand their business outside Nashville by opening sister shops in Chattanooga, Tennessee, and Destiny, Florida, following the launch of a facility in Cool Springs, Tennessee, in the year 2020.

Regrettably, those two locations have had a difficult time generating sufficient cash. Additionally, customers may enjoy Party Fowl’s hot chicken in the cities of Donelson and Murfreesboro, in addition to licensed sites at Nissan Stadium and Nashville International Airport.



A court filing states that “this unfortunate timing started a snowball of debt that was only exacerbated by the subsequent opening of locations in Chattanooga and Destin, which have failed to take hold as of yet.” This snowball of debt was only made worse by the subsequent launch of such locations. “Party Fowl can provide its devoted customer base with a fantastic product as well as an exceptional experience. To put things back on track, make a course correction, and plot a more favorable future, it merely requires the resources that are provided in Chapter 11, Subchapter V.



Appeals to Courts to Pause Business

In the hopes of being able to “build sufficient cash to satisfy priority and administrative claims under a Chapter 11 plan of reorganization and regain control of daily cash flows,” the owners of the company have requested that the court grant their company a pause on its “non-critical but highly damaging financial obligations.” This request was made on behalf of the company, according to the Nashville Post.




 

Nashville

According to what Payne stated in an email to the Post, “Party Fowl is Nashville through and through the entire process.” The current financial troubles that it is experiencing are not unique to the industry as a whole; yet, the reason why Chapter 11 exists is to assist businesses in overcoming these challenges.

In the future, we are excited to be of assistance to Austin, Nick, and the rest of the Party Fowl team as they navigate this process. We have high hopes that the reorganization will be completed on time and will make it possible for Party Fowl to emerge even more powerful and capable of continuously serving its clients and the community at large for many years to come.



Scheduled To File Joint Reorganization Plan

According to the court record, Smith and Jacobson of Party Fowl are anticipated to submit a combined plan of reorganization by the deadline for filing under Chapter 11, Subchapter V, which is scheduled to take place on April 8.

Henry Hildebrand, Alex Payne, and Denis Graham (Gray) Waldron, all of whom work for Dunham Hildebrand, are the attorneys representing Party Fowl.

“It is not a secret that the past several years have been difficult for people and businesses of all shapes and sizes. This is something that most people are aware of. We are thankful that there are options, such as Chapter 11, that can make it possible for us to move in a constructive direction of development.




Nashville

Our teams are aware of both where we are currently located and where we intend to go in the future. We would be delighted to see you once this snow has melted. This is the reason we do this. According to a statement that Smith provided to the Business Journal, “We hope to be a part of our communities for many years to come, which will be in the future.”





Nashville is known for its hot chicken, which is a dish that is so popular that it attracts travelers to Music City, where they wait in long lines to get it. In addition to Party Fowl, there are a multitude of other well-known chains located in and around the booming metropolis. Some of these chains include Hattie B’s, 400 Degrees, Bolton’s Spicy Chicken & Fish, Pepperfire, Prince’s, and Big Shake, to mention just a few.




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