By Shane Shifflett | Wall Street Journal
Twisted Root Burger was a Texas success story, expanding from one casual restaurant in 2006 to 24 sites including restaurants, bars, a brewery and a theater. Now, the company is moving fast in another direction—into bankruptcy.
The chain shut down in March. Some sites reopened in June only to be shut down again as coronavirus cases surged. “I’m not gonna open that restaurant at half the revenue,” said co-founder Jason Boso. “I’m gonna walk away from those restaurants. I’m not gonna set myself up for failure.”
Mr. Boso isn’t giving up though. Instead, his decision to put five of the restaurants into bankruptcy is a strategic move to keep control.
“Small businesses for whom bankruptcy while retaining operational control was not previously an option may find relief under the newly effective Small Business Reorganization Act of 2019 (SBRA), as modified by the CARES Act. The SBRA may be a viable option for small businesses in financial distress as a result of COVID-19.” ~ Dan Gauthier, attorney at Rose Law Group
