K&W Cafeterias Inc. is requesting that a federal bankruptcy court judge allow it to hire a financial adviser to assist in finding a buyer.
K&W, a staple of Southern comfort foods for 83 years, filed for Chapter 11 bankruptcy protection Sept. 2 as the latest step in a corporate downsizing that began before the COVID-19 pandemic. It had about 1,400 employees at the time of the filing.
Chapter 11 protection is sought by companies that plan to remain in business, with the format allowing them to reduce or eliminate certain expenses and debts.
The Winston-Salem company said in Friday’s filing it wants to hire SC&H Group Inc., based in Baltimore, “to assist the debtor in connection with a potential transaction or series of transactions … that may involve a sale or transfer of assets of the debtor to a buyer.”
K&W has agreed to pay SC&H a monthly fee of $17,500 and a transaction fee of at least $225,000 that would increase with a potential higher sale price.
The bankruptcy filing listed assets of more than $30 million, of which $12.56 million is with 100 to 199 creditors holding secured claims on property.
"The company will continue to serve guests" at at its 18 restaurants, including three in Winston-Salem and two in Greensboro, during the restructuring, said Dax Allred, the company's president, in a statement.
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