The upscale vegan restaurant chain Planta emerged from bankruptcy this week following a sale of the company to one of its former creditors.
Anchorage Capital Group acquired the company out of bankruptcy with a bid valued at $7.8 million, most of which is in the form of debt converted into equity, according to court documents.
The buyer acquired eight locations of the brand. The chain operated 18 restaurants when it filed for bankruptcy in May. The other locations have closed, with some assets sold.
Planta was founded in 2016 and grew rapidly by opening high-end restaurants serving a selection of Asian-inspired, plant-based dishes, including Firecracker Wings made with cauliflower and Korean Chick’n Baos. Revenues last year were $6 million.
The company blamed the pandemic and its temporary closures along with its dependence on third-party delivery for much of its revenues, which increased costs. Rising costs coming out of the pandemic, increased prices and traffic slowdowns also hurt.
Planta’s aggressive expansion also put pressure on profit. The company fell behind on lease payments as its finances worsened, leading to the bankruptcy filing.
Anchorage is a hedge fund that had provided Planta with a convertible note that helped fund the chain’s growth. That note could be converted into equity if it wasn’t repaid on time.
The investment banking firm Cassel Salpeter & Co. worked with Planta to market the chain and its assets during bankruptcy.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.