
World of Beer, the Tampa-based casual-dining franchise, has emerged from bankruptcy with restructured debt and plans to open more locations.
A Florida bankruptcy court judge last month confirmed the company’s restructuring plan, which included a reduced debt payment to lender Synovus Bank of $19 million by the chain’s CEO, Paul Avery, according to court documents. That was reduced from $28 million during settlement talks.
The company in a press release described itself as “bullish” and said that it is planning to open more locations. The chain opened a location in Fort Worth, Texas, last month and plans one in Annapolis, Maryland, early this year. World of Beer has more than 30 locations and vowed to open “four to five franchise locations” a year over the next five years.
“We remain deeply committed to serving our loyal customers, supporting our employees and franchises, and driving innovation and growth in a competitive market,” Avery said in a statement.
World of Beer filed for bankruptcy last August, one of several restaurant chains to do so during a volatile period in the restaurant business. It had closed 14 locations.
Just over half of the chain’s locations are owned by franchisees. Founded in 2007, the company at one point was one of the fastest-growing chains in the U.S. and generated nearly $86 million in annual system sales by 2018. The company in court documents blamed its problems in part on a difficult relationship with franchisees, including a number who had little experience in the industry and then operated the franchise as a passive business.
World of Beer also lost multiple legal cases, which cost the company millions in lost royalties and legal fees. The pandemic also led to the closure of about 15% of its restaurants. It then opened a trio of new locations in mid-2020, using a federal lending program. All of those locations failed.
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