Hawkers Asian Street Food, a chain with 15 restaurants on Nashville’s Main Street, has filed for bankruptcy but said it will keep its restaurants open while it resolves disputes with lenders.
Hawkers voluntarily filed for Chapter 11 bankruptcy protection to retain operations, citing the need to “preserve the integrity of its brand and protect itself from excessive lending,” according to a media statement.
Meanwhile, all of the Florida-based restaurant’s locations, including its East Nashville location, remain open.
Hawkers’ attorney, R. Scott Shuker, identified the lender as ABC Funding LLC, which represents Summit Partners Subordinated Debt Fund IV.
“It’s quite a long story,” he said. “We’re hearing about excess lenders, they’re trying to wind down their lending operations and are trying to force liquidation. Hawkers has been forced into this situation even though they’ve never missed a payment.”
The lender did not respond to a request for comment.
The Nashville store opened in late 2020.
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Hawkers, which sells Asian dishes such as soup dumplings and curries in bright and bustling shops, has continued to grow since it opened in 2011 and has plans to open more stores.
Last year, Hawkers claimed that company-wide sales increased by 18.5% despite adverse market conditions. The same year, Hawkers Holdings LLC entered into a debt capital agreement with ABC Funding to continue growing the brand.
Now, the company says lenders are seeking to acquire a controlling interest in the restaurants.
“This filing will enable Hawkers to continue operating as usual and paying its vendors, whilst restabilising the company’s governance and ensuring a prosperous and successful future for Hawkers and its dedicated team,” the statement said.
Hawkers “hopes to negotiate a favourable outcome with the relevant lenders”, the statement continued, saying the outlook for the chain and its employees was positive.
Headquartered in Central Florida, Hawkers Asian Street Food is owned and operated by Caleb Harrell, Allen Lo, Wayne Young and Kin Ho. The company opened its first location in Orlando, Florida in 2011 and has since expanded across Florida, Georgia, North Carolina, Tennessee, Maryland, Virginia and Texas.
For more information, visit www.EatHawkers.com.
