Granite City Food & Brewery For Sale
Minneapolis-based Granite City Food & Brewery Ltd. might be on the market.
The restaurant chain said this week that it hired Houlihan Lokey Capital Inc. to assist in exploring a “possible strategic transaction.” This could include a sale, disposition, merger or other deal involving all or a significant portion of the company. The company said it is not likely to comment further unless an agreement is reached on any such deal.
Granite City also rolled out preliminary unaudited financial results for fiscal 2014 on Monday that show revenue climbed from $134 million in 2013 to $136 million last year. Operating profits rose to $10 million from $8 million a year ago and consolidated same-store sales were up 0.7 percent. Still, the company hasn’t been profitable: After a loss of more than $3.5 million in 2013, Granite City said it lost more than $2.5 million last year.
The Star Tribune reported that Granite City possesses a heavy debt load: Concept Development Partners became its new majority owner in May 2011 and by 2012 had injected more than $30 million in new capital and debt financing.
The company was founded in St. Cloud in 1999 and now operates two casual dining concepts: Granite City Food & Brewery and the Cadillac Ranch All American Bar & Grill. It has 31 namesake restaurants in 13 states with four additional openings set for this year and runs five Cadillac Ranch locations in five states. The company deregistered its stock in 2013 to save on the costs of reporting its financials.
Houlihan Lokey is the same investment firm now helping the struggling Oakdale-based Imation Corp. explore its options following another year of losses.