Published:
Shells Seafood Restaurants, Inc. Files Petition for Reorganization Under Chapter 11
TAMPA, Fla., Sept. 3 /PRNewswire-FirstCall/ -- Shells Seafood Restaurants,
Inc. (OTC Bulletin Board: SHLL) today announced that it has filed a voluntary
petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The
filing was made in the U.S. Bankruptcy Court for the Middle District of
Florida, Tampa Division. Shells owns eighteen restaurants with a partial
interest in two additional restaurants, but today closed operations at eight
locations. The eight closed restaurants are located inOcala,Winter Park,
Orlando,Kissimmee,Winter Haven,St Petersburg,Holmes Beach and Ft 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 core group of the remaining ten restaurants owned by Shells are
expected to conduct business as usual without interruption, providing their
many loyal customers with the same high level of service and quality to which
they have become accustomed.
Chief Executive Officer Marc Bernstein said, "The restaurant industry has
been negatively affected by the economic downturn, as recently reflected by
the closings of Bennigan's and Steak and Ale restaurant chains. This downturn
has affected some of the marginal stores operated by Shells and necessitated
the Chapter 11 filings and store closings. The ten 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."
Shells is currently pursuing various sources of post-petition financing
but has not received any financing commitments. There is no assurance that
Shells will obtain any additional financing.
About the Company
The Company manages and operates 14 full-service, neighborhood seafood
restaurants inFlorida under the name "Shells." Additionally, the Company
partially owns and manages a full-service restaurant named "Rock Beach Grill"
inPembroke Pines, Florida. The Company's restaurants feature a wide
selection of seafood items, including shrimp, oysters, clams, mussels,
scallops, lobster, crab and daily fresh fish specials, cooked to order in a
variety of ways: steamed, sauteed, grilled, blackened and fried. The
Company's restaurants also offer a wide selection of pasta dishes, ribs,
chicken, steaks, appetizers, salads, desserts, full bar service and sushi, in
select locations.
Forward-Looking Statements
In addition to seasonal fluctuations, the Company's quarterly and annual
operating results are affected by a wide variety of other factors that could
materially and adversely affect revenues and profitability, including changes
in consumer preferences, tastes and eating habits; increases in food, labor
costs and other operating expenses; the availability of food acceptable to our
quality standards at acceptable prices; the availability of qualified labor;
national, regional and local economic and weather conditions; international
economic, cultural and political conditions; promotional timings and
seasonality; demographic trends and traffic patterns; changes in travel and
tourism tendencies, particularly in light of world events; competition from
other restaurants and food service establishments; availability of third-party
financing to fund capital or operating activities, if required; changes in
personnel, including senior management; and the timing, costs and charges
relating to restaurant openings, closings and remodelings. As a result of
these and other factors, the Company may experience material fluctuations in
future operating results on a quarterly or annual basis, which could
materially and adversely affect its business, financial condition and stock
price. Furthermore, this press release and other documents filed by the
Company with the Securities and Exchange Commission ("SEC") contain certain
forward-looking statements with respect to the business of the Company and the
industry in which it operates. These forward-looking statements are subject
to certain risks and uncertainties, including those mentioned above, which may
cause results to differ significantly from these forward-looking statements.
The Company undertakes no obligation to update these forward-looking
statements on a regular basis. An investment in the Company involves various
risks, including those mentioned above and those that are detailed from
time-to-time in the Company's SEC filings.
SOURCE Shells Seafood Restaurants, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: ,OTC,RST,BCY,FL-Shells-Sea-Chap11
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