Mounting Debt and Unmet Expectations
Court filings show Pinstripes holds $143.1 million in funded debt, of which $115 million is owed to Silverview. On top of that, the company carries $47 million in trade debt, leases, and other unsecured liabilities, plus $2.4 million in outstanding gift cards.
Katchadurian explained that inflation-driven price hikes drove customers away, while newly opened stores failed to generate revenue, leaving the company unable to service its debts. After failed recapitalization attempts earlier this year, Pinstripes negotiated a restructuring pact with Silverview.
Stalking Horse Bid and Store Closures
Under the restructuring agreement, Silverview’s stalking horse offer includes a $15 million credit bid and $1.6 million in cash, alongside the debtor-in-possession financing.
Pinstripes confirmed it will close certain locations but assured customers that gift cards and event deposits will still be honored at continuing venues.
“We are confident this step will allow us to emerge stronger and better positioned to serve guests and stakeholders in the future,” the company said in a Tuesday statement.
