In a coronavirus-era miracle, HopCat restaurants will remain open after a new deal was announced Tuesday.
Grand Rapids-based BarFly Ventures sold its assets - including seven HopCat gastropubs in the state, one in Nebraska and another in Indiana - to new owners for $17.5 million, months after the company filed for bankruptcy.
The deal comes more than four months after BarFly filed for bankruptcy protection in June, when owner-founder Mark Sellers also warned officials that Michigan can expect "a giant wave of bankruptcies" in the hospitality industry in the near future. Despite the chain's massive success statewide and plans for expansion, it has experienced a tumultuous few months as it struggled to keep the lights on in its nine
HopCat locations.
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Investors Main Street Capital and Congruent Investment Partners, which were previous lenders to the company from 2015, are acquiring the company under a new operating partnership, Project BarFly. The owners plan to stay true to the company's vision.
"We know the business extremely well from our experiences over the last five years. We strongly believe in each restaurant concept and intend to return the company's focus to providing a unique, best-in-class customer experience," said Travis Baldwin, Founder of Congruent Investment Partners, in a release Tuesday. "Our goal is to focus efforts around the company's key markets and ensure HopCat, Stella's and Grand Rapids Brewing Company remain a thriving part of these communities."
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Although Sellers predicted filing for Chapter 11 bankruptcy would have little to no impact on the business' daily operations, the reality of coronavirus would prove to be lethal to the restaurant industry despite alternative methods of operating like curbside pickup and delivery. BarFly Ventures also owned Stella's Lounge and Grand Rapids Brewing Company.
"The whole management team and I are very excited about the new owners," said Ned Lidvall, CEO of Project BarFly, in the release. "We think it's a great fit for the company, and the energy and collaboration they bring will only enhance our recovery and growth. We are also thankful for our loyal guests and teammates - and vendor and landlord partners who have been working hard to make our progress possible."
For now, select locations are allowing dine-in and alternative options are available as new owners are focusing on off-premise sales and restoring hours of operation at all locations.

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