The Bloomington-based company that owns the Granite City Food & Brewery restaurant chain has filed for Chapter 11 bankruptcy protection.
Granite City Food & Brewery Ltd. made the application this week in Minnesota bankruptcy court.
The chain has 25 Granite City restaurants across 13 states, including Granite City eateries in St. Cloud, Maple Grove, Roseville and Eagan, as well as operating the Cadillac Ranch at the Mall of America.
Per a statement, the company is in the process of a possible sale to KRG Granite Acquisition LLC for $7.5 million plus some liabilities.
It's also taken out a $5 million debtor-in-possession loan so it can fund its operations through the auction and sale process.
"The Granite City Board of Directors and management team have thoroughly assessed our strategic options and financial situation and unanimously agree that this structured sale process represents the best possible solution for the company," Granite City’s CEO Richard Lynch said in a statement.
"We believe pursuing this path will provide value to our creditors, enable one or more future restaurateurs to operate our locations, and preserve hundreds of jobs."
The first Granite City restaurant opened in St. Cloud in 1999.