CB Holding Corp. of Mountainside had abruptly shut down 47 restaurants in New Jersey, New York and Pennsylvania this week, about one-third of the chain's tally. Company officials said they were underperforming and that the closings were made to preserve liquidity.
Thirty-nine other restaurants - 20 Charlie Brown's, 12 Bugaboo Creek Steakhouses and seven Office Beer Bar & Grill locations - remain open.
In voluntarily filing for Chapter 11 protection in U.S. District Court in Delaware for itself and all its subsidiaries, CB Holdings cited assets of $100 million to $500 million, and liabilities of $50 million to $100 million. It said it had less than 50 creditors and intends to reorganize to "provide for an orderly sale of its ongoing business operations."
The company also filed a motion seeking approval of $2.5 million of debtor-in-possession financing from Ally Commercial Finance LLC to fund its continuing operations.
The chain says it will honor gift cards and its customer loyalty program. It also said employees who worked at the shuttered restaurants would be given the chance to get jobs at those that remain open.