Shells Seafood Restaurants, Inc. Files Petition for Reorganization Under Chapter 11
September 03 2008 - 3:13PM
PR Newswire (US)
TAMPA, Fla., Sept. 3 /PRNewswire-FirstCall/ -- Shells Seafood
Restaurants, Inc. (OTC:SHLL) (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 in Ocala,
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 in Florida under the name "Shells." Additionally, the
Company partially owns and manages a full-service restaurant named
"Rock Beach Grill" in Pembroke 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. DATASOURCE: Shells Seafood Restaurants, Inc. CONTACT: Jan
Broadwater of Shells Seafood Restaurants, Inc., +1-813-961-0944 Web
site: http://www.shellsseafood.com/
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