TAMPA, FL (Covering Katy News) - World of Beer, the Tampa, Florida-based craft beer bar and restaurant with a location in LaCenterra at Cinco Ranch, in Katy, is undergoing Chapter 11 bankruptcy reorganization.
The company says this step is aimed at addressing outstanding debt and closing underperforming locations, which had been shut down previously in an effort to avoid this filing.
In a statement to the Orlando Business Journal and Tampa Bay Business Journal on August 2, WOB explained that rising interest rates, lease obligations, inflation, and increased operating costs, coupled with a slow return to pre-pandemic dining habits, have contributed to its financial difficulties.
While WOB once had restaurants across the U.S., it has since scaled back significantly, now operating 33 franchised and company-owned locations. Over the past year, the company closed 14 locations leading up to the bankruptcy filing.
Despite these challenges, World of Beer continues to operate in the Houston area with locations in Towne Lake, Cypress, and LaCenterra at Cinco Ranch in Katy.
The company owes around $25 million to its largest creditor, Synovus Bank, and has estimated total liabilities between $10 million and $50 million, according to a bankruptcy court filing in Florida. The exact amount of unsecured debt is still being determined but includes debts to former landlords of closed locations and legal costs from past lawsuits.
Paul Avery, President and CEO, stated, “Today’s restructuring ensures the long-term health and sustainability of WOB Bar & Kitchen. This strategic move will help us realign our operations, reduce debt, and improve our financial flexibility.” Avery expressed confidence in the management team and the future of the restaurant chain.
The bankruptcy does not halt WOB’s expansion plans. The company recently reopened a location in Jacksonville, Florida, and added a new venue in Odessa, Florida. Upcoming openings include Hinesville, Georgia, in the next few weeks, and Bel Air and Annapolis, Maryland, by early 2025. Avery has also identified Central Florida submarkets, such as Lake Nona and Oviedo, as potential future expansion areas.
Avery, who has extensive experience with Tampa’s Bloomin’ Brands and served as its COO in the 1990s and early 2000s, has led WOB since 2007.
World of Beer joins several Florida-based restaurant chains that have recently filed for bankruptcy protection.