Bowling-and-dining concept pursues section 363 sale with $16.6 million stalking horse bid as company struggles with post-pandemic consumer shifts
Company Files Chapter 11 Protection
Pinstripes Holdings Inc., the "eatertainment" chain that combines Italian-American dining with bowling and bocce ball, filed for Chapter 11 bankruptcy protection on September 8, 2025, in the U.S. Bankruptcy Court for the District of Delaware, launching an expedited sale process aimed at preserving nearly 900 jobs across its remaining eight restaurant locations.
The Northbrook, Illinois-based company, which went public just 21 months ago through a merger with a special purpose acquisition company, is seeking court approval for a section 363 asset sale to its largest creditor, Silverview Credit Partners LP, under a $16.6 million stalking horse bid that includes a $15 million credit bid and $1.6 million in cash.
Business Model and Operations
Founded in 2007 by CEO Dale Schwartz, Pinstripes operates large-format entertainment venues spanning 26,000 to 38,000 square feet that feature bowling alleys, bocce courts, outdoor patios and private event spaces capable of hosting over 900 guests at a time. The company generates approximately 80% of its revenue from food and beverage sales and 20% from games, with annual revenue of approximately $129 million in the fiscal year ending April 27, 2025.
The company had expanded to 18 locations across 11 states at its peak, with additional locations under construction in Washington and Florida, but has already closed ten underperforming locations and now operates just eight restaurants across Illinois, Maryland, California, Minnesota, Ohio and Washington, D.C.
Financial Distress and Debt Structure
The bankruptcy filing comes after the company struggled with mounting debt obligations totaling $143.1 million and deteriorating performance following inflationary pressures and shifting consumer preferences. Chief Restructuring Officer James Katchadurian of CR3 Partners noted in his declaration that "these chapter 11 cases were almost a year in the making and reflect the Debtors' only remaining path to maximize value."
Pinstripes' debt structure includes $36.1 million in existing Silverview first lien obligations, $85.4 million in second lien obligations also held by Silverview, $15 million owed to Granite lenders, and various other secured debt. The company also carries approximately $47 million in unsecured obligations plus $2.4 million in outstanding gift card liability.
Failed Restructuring Efforts
The company's financial distress accelerated after it received default notices from secured lenders in January 2025, leading to forbearance agreements while management explored strategic alternatives. Despite an extensive marketing process that contacted more than 80 potential buyers, with over 20 executing non-disclosure agreements, no actionable offers materialized from third-party purchasers.
"Unfortunately, economic deterioration over the past year resulted in decreased revenue and eroded the Debtors' restructuring alternatives," Katchadurian stated in his declaration. A planned recapitalization with Oaktree Capital Management fell through in March 2025, further limiting the company's options.
Proposed Sale Timeline
Under the proposed sale timeline, Pinstripes is seeking approval of bidding procedures within 14 days of the petition date, with a bid deadline set for 35 days after filing, an auction within 40 days, and a sale hearing within 45 days. The company aims to close the transaction within 50 days of the bankruptcy filing.
Silverview Credit Partners, which serves as both the company's largest secured creditor and the proposed stalking horse bidder, has committed to provide $3.8 million in debtor-in-possession financing to fund operations during the bankruptcy process. The DIP facility carries a 10% payment-in-kind interest rate, significantly lower than the 15-20% rates on the company's existing debt.
Industry Challenges
The "eatertainment" sector has faced particular challenges in the post-pandemic environment, as inflation increased dining costs while consumers became more price-conscious. Pinstripes noted that while it was able to offset some rising costs through gradual menu price increases and improved purchasing practices, inflation and reduced customer traffic significantly strained the business.
Pinstripes went public on December 29, 2023, through a reverse merger with Banyan Acquisition Corp., but its stock was delisted from the New York Stock Exchange after trading was suspended on March 5, 2025, due to the company's deteriorating financial condition.
Legal Representation and Next Steps
The case has been assigned number 25-11677 in the Delaware bankruptcy court. Young Conaway Stargatt & Taylor LLP is representing the debtors in the bankruptcy proceedings, while Hilco Corporate Finance is serving as the company's investment banker for the sale process.
"Absent Silverview's commitment and the path contemplated by the Support Agreement, the Debtors would file for chapter 7, to the detriment of all constituencies," Katchadurian emphasized, underscoring the urgency of the proposed transaction to avoid a liquidation that would eliminate all remaining jobs and close the remaining restaurants permanently.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 154 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.