The Bizarre Development In Steak 'N Shake's Bankruptcy Saga
If you love a good handspun milkshake with a burger, nothing compares to Steak 'n Shake. While the chain always serves up a good time, 2020 hit the business hard and its revenue dropped almost 50 percent (via Restaurant Business). With these massive losses, the business seemed like it might shutter for good. As of a week ago, Steak 'n Shake sat at the edge of bankruptcy, considering it only had days to pay off a massive loan in order to stay financially afloat (via QSR). In a shocking turn of events that guarantees to please anyone who can't live without the restaurant's signature Steakburgers, Steak 'n Shake pulled itself out of debt and has launched a fiscal offensive maneuver that has left everyone following the bankruptcy saga scratching their heads.
According to Restaurant Business, Steak 'n Shake recently paid back a massive $153 million loan on the cusp of its deadline, in spite of the fact that it looked like the chain didn't have the necessary funds to do so, and then proceeded to sue the financial institution that granted the loan. Steak 'n Shake filed the lawsuit claiming that the lending group attempted to take control of the outstanding loan on the secondary market, forcing the business to go bankrupt, in order for the lending group to buy out and seize control of Steak 'n Shake.
With this lawsuit in place, the business stands to make some offensive moves in the coming days that few could have predicted.
A new chapter in Steak 'n Shake history
Fortress Investment Group, the firm that Steak 'n Shake have filed a lawsuit against, claims it did nothing wrong and stated that it never violated an NDA or engaged in any wrongdoing (via Bloomberg). Steak 'n Shake countered this claim, stating that Fortress agreed upon a confidentiality agreement to learn more about the real estate the restaurants sat on, in addition to other secret information that gave the firm an edge to buy out the restaurant chain if it tanked (via Restaurant Business).
The amount of drama fit for a soap opera has us stuck on the edge of our seats, anticipating what might happen next to this iconic burger joint. While we can all breathe a sigh of relief that the business has paid off its loans and avoided bankruptcy, we now have to collectively hold our breath as we watch the legal proceedings between Steak 'n Shake and the lending firm. Only time will tell what may happen, but with any luck, we can keep grabbing burgers from this storied institution for years to come.