Steak ’n Shake Considers Bankruptcy Filing to Manage Debt Load

Steak ’n Shake Inc. is considering filing for bankruptcy to address upcoming debt maturities as pandemic disruptions to the restaurant business drag on, according to people with knowledge of the matter.

Advisers including FTI Consulting Inc. and the law firm Latham & Watkins are prepared to put the Indianapolis-based chain into Chapter 11 as soon as next week, said the people, who asked not to be identified discussing confidential plans. The burger chain earlier enlisted advisers to help it manage its debt load, which includes a loan due in March.

Representatives for FTI and Latham didn’t comment.

The potential plans for a bankruptcy could change, the people said, and the company has also discussed out-of-court solutions.

Steak ’n Shake’s parent company, Biglari Holdings Inc., has said it won’t guarantee the chain’s loan maturing in March, though it acknowledged the company would otherwise struggle to either pay off or refinance the debt.

Representatives for Biglari Holdings and Steak ’n Shake couldn’t be reached for comment.

Steak ’n Shake, known for its burgers and milkshakes, was founded in 1934 in Normal, Illinois. The chain has more than 500 locations in 28 states, with concentrations in the Midwest and the South.

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