Shells Restaurants Files For Bankruptcy

Looks like yet another sign of the times. Shells has been around here as long as I have. From Tampa Bay Business Journal.

Shells Seafood Restaurants Inc. has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division. The company will continue to operate its business as “debtor-in-possession" during the process.

The filing Tuesday comes shortly after the company entered into a new partnership in Pembroke Pines to convert one of its stores to a new concept, Rock Beach Grill. Management was hopeful that the new concept and a new, cheaper menu would stimulate sales.

Company officials declined to comment on the filing.

PFG Florida, based in Dover, is the largest creditor at $604,007.14. PFG is a wholesale food distributor and Shells’ largest vendor.

The 20 largest creditors are a collection of trade vendors, professional services firms and energy companies. The Tampa office of law firm Fowler White is owed $79,474.44, the law firm Shutts & Bowen $19,395.89 and Kirkland Ross Murphy & Tapp, the company’s audit firm, is due $31,818.90. There are 389 creditors listed in the filing. Assets and liabilities are both listed as between $1 million and $10 million.

Shells has 23 million shares of common stock outstanding.

Shells was founded in 1986 and, at its peak, had 45 stores throughout Florida and the Midwest. Shells owns 18 restaurants and a partial interest in two additional restaurants, but closed operations at eight locations. The eight closed restaurants are located in Ocala, Winter Park, Orlando, Kissimmee, Winter Haven, St Petersburg, Holmes Beach and Fort Myers.

Four other Shells locations managed and operated by the company, as well as the partially owned and managed “Rock Beach Grill” restaurant, are not included in this petition, the company said in a release.

“The 10 remaining restaurants have the strongest historical performance or the greatest potential for the future. It is our goal to emerge from Chapter 11 as soon as we can with a capital structure and a balance sheet that will allow us to continue to operate,” chief executive officer Marc Bernstein said in a release.

On Aug. 28, Warren Nelson, president and chief financial officer, resigned his position. Nelson had been president since February 2008 and with the company since 1993.

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