Key facts
- Yardbird Group LLC filed for Chapter 11 bankruptcy on Monday, citing nearly $25 million in debt.
- The company is seeking a sale of its assets and a restructuring.
- Brightwood Capital Advisors will provide $5.4 million in debtor-in-possession financing.
- SH Acquisitions, affiliated with Brightwood, is the stalking horse bidder.
- Yardbird was founded in 2011 and had grown to seven U.S. locations and one in Singapore before closing several restaurants.
Yardbird Group LLC, an upscale fried chicken chain known for its Southern-style dishes and polished-casual atmosphere, filed for Chapter 11 bankruptcy protection on Monday in Delaware. The company cited nearly $25 million in debt obligations and is pursuing a sale of its business as part of a restructuring effort.
Founded in 2011 and recognized as a James Beard Awards semifinalist in 2012, Yardbird expanded significantly after receiving funding from private-equity firm TriSpan Rising Stars in 2017. At its peak, the chain operated seven U.S. locations and one in Singapore, but has since reduced its footprint to five restaurants, three of which are company-operated and two are licensed.
According to bankruptcy documents, Yardbird's financial struggles began with the debt incurred for expansion, exacerbated by the COVID-19 pandemic, which caused "irrecoverable damage." Despite some locations performing well, mounting debt and location-specific operating challenges led to the closure of several restaurants. The company owes significant amounts on loans from Brightwood Capital Advisors, City National Bank of Florida, and InKind. City National Bank had also sued Yardbird for breach of contract in March, a case that remains pending.
Yardbird is seeking to sell its assets and has identified SH Acquisitions, an entity affiliated with Brightwood Capital Advisors, as the stalking horse bidder. Brightwood will also provide $5.4 million in debtor-in-possession financing to support ongoing operations during the bankruptcy process. Competing bids are due by Oct. 27, with an auction scheduled for Nov. 2.