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Joe’s Crab Shack Owner Files for Bankruptcy After Sales Drop

  • Ignite Restaurant Group enters Chapter 11 with bidder lined up
  • Kelly Investment Group affiliate offers $50 million for chain
Updated on

Ignite Restaurant Group Inc., the operator of the Joe’s Crab Shack and Brick House Tavern & Tap chains, filed for bankruptcy with an eye toward a possible sale to an affiliate of Kelly Investment Group.

Ignite has seen sales decline as the U.S. dining sector faces drops in customer traffic. The company listed estimated total debts as of April 30 of  $197.3 million in Chapter 11 papers filed Tuesday in Houston federal court. Assets totaled $153.4 million.