Pinstripes, the Northbrook-based bowling and restaurant chain, has filed for Chapter 11 bankruptcy protection amid mounting debt and an inflation-driven downturn in the so-called “eatertainment” business.
The publicly traded company, which owes $143 million in secured debt, abruptly closed 10 of its 18 locations Monday – including one in Chicago’s Streeterville neighborhood – and will look to sell its remaining assets at a bankruptcy auction next month.
Three suburban Chicago locations — Oak Brook, South Barrington and the flagship Northbrook venue — will remain open while the company seeks a new buyer, a Pinstripes spokesperson said in an email Tuesday.
“We have a committed buyer for our continuing locations, and we will continue to market our assets as a going concern to maximize value,” the company said in a statement. “This decision was made to strengthen our financial foundation by reducing liabilities – including closing certain locations – to ensure business continuity and to position the company for long-term success and growth.”
Pinstripes sought Chapter 11 bankruptcy protection after a nearly year-long attempt to sell the company or restructure its debt came up short, according to the filing Monday in a Delaware court.
Founded in 2007 by Dale Schwartz, who also served as CEO, Pinstripes carved out a niche by combining bowling, bocce and Italian cuisine, providing a spacious venue that could accommodate everything from date nights to weddings. Competitors in the multi-billion dollar “eatertainment” segment include Dave & Buster’s and Topgolf, among others.
Pinstripes, which was valued at $520 million when it completed an initial public offering in December 2023, grew to 18 locations in 11 states, with its most recent opening last November in Walnut Creek, California. The two-story, 25,000-square-foot Walnut Creek location was among the 10 abrupt closures Monday, the company said.
The 30,000-square-foot Streeterville location, which opened in January 2015 at 435 E. Illinois Street, had a longer run before the alleys were suddenly silenced as part of the Chapter 11 filing.
Besides Illinois and California, other states with remaining Pinstripes locations include Maryland, Ohio and Minnesota, as well as Washington, D.C. Pinstripes has closed its locations in Florida, Texas, Connecticut, Kansas and New Jersey.
Each Pinstripes location can host over 900 customers at a time, including 300 at its restaurant. On average, each location generates about $7.4 million in annual revenue, with about 80% coming from the Italian restaurant and the rest from the games, according to the bankruptcy filing. The chain generated about $129 million in revenue for fiscal year 2025, which ended in April.
But as Pinstripes was expanding its national footprint and taking on more debt, same-store business was declining amid inflation pressures, according to the company.
“The company has suffered from a series of challenges, including inflationary pressure across various sectors that have drastically and negatively affected their performance,” the bankruptcy filing stated. “In particular, increases in the cost of labor and commodities in recent years have raised the cost of ‘dining out.’”
Same-store sales, for example, were down 7.7% year over year during its fiscal third quarter earnings report in February, the last one issued by the company.
Meanwhile, the costs incurred for new stores in the development pipeline, including several under construction in Florida and Washington, left Pinstripes unable to service its debt, according to the bankruptcy filing.
In January, Pinstripes retained Piper Sandler to pursue a sale. The investment banker contacted 80 potential buyers, of which 20 signed non-disclosure agreements, but no actionable offers were received, according to the bankruptcy filing.
“Unfortunately, economic deterioration over the past year resulted in decreased revenue and eroded the debtors’ restructuring alternatives,” the lawsuit states, leading to the Chapter 11 filing.
Working with Florida-based Silverview Credit Partners, the largest secured and unsecured creditor, Pinstripes agreed to the bankruptcy filing and auction.
As part of the agreement, Silverview, which is owed more than $115 million in secured debt, will make a Stalking Horse Bid for the assets in the upcoming auction with a $15 million credit bid and $1.6 million in cash.
“To be blunt, the process proposed to be consummated through these Chapter 11 cases is not perfect, and it is not where the debtors wished they were right now,” the filing states. “However, it is the only pathway forward that preserves value for the debtors’ constituents and preserve the debtors’ business as a going concern.”
In addition to the $143 million in secured debt, Pinstripes owes $47 million in unsecured debt to vendors, suppliers, landlords and taxing authorities, among others, according to the bankruptcy filing.
Among the unsecured debt is $2.4 million in accrued gift card liability held by Pinstripes customers.
“Any gift cards or event deposits will be honored at continuing locations,” the company said in its statement.
rchannick@chicagotribune.com
