NASHVILLE, TN -- 07/16/09 --
Santa Fe Holding Company (PINKSHEETS: SFHD)
announced that it has voluntarily initiated proceedings under Chapter 11 in
U.S. Bankruptcy court in Nashville, TN.
Santa Fe intends to use the reorganization process to strengthen its
financial position which will improve operating and financial performance.
Additionally, the Company will undertake further expense reduction plans to
enhance productivity and provide marketing support to expand its loyal
customer base.
While 16 new stores built over the last two years have flourished, several
of the older units have under performed. Three of those units were closed
on July 15.
According to CEO Danny York, "Santa Fe continues to be dedicated to giving
customers the freshest food in a friendly atmosphere. The recent filing
will allow us to reorganize our company and emerge stronger than ever."
Mr. York added, "Our business decision was made in the best interest of all
of our dedicated employees and vendor partners who, like us, believe in the
success of this concept. This decision not only protects the approximately
2,300 people we employ, but the hundreds of local businesses they support
as consumers."
A DIP loan commitment has been secured and, subject to court approval, will
provide funds for operating expenses. Craig Silvey, President of Integris
Solutions, will play a key role in helping the Company during the
restructuring process.
The company has filed "First Day" motions seeking Bankruptcy Court approval
to conduct business as usual. The motions are intended to allow the
Company to continue paying employees and vendors during the reorganization
process.
About Santa Fe Holding Co.
Publicly traded Santa Fe Holding Company (PINKSHEETS: SFHD), of Brentwood,
Tenn., operates Santa Fe Cattle Co., one of the nation's fastest growing
casual dining restaurant chains. It owns 27 restaurants in 6 states and 1
franchise unit. Founded in 1996, customers enjoy a blend of aged, hand cut
USDA Choice steaks, ribs, fajitas, Texas Hill Country-influenced homemade
sauces and dressings and other favorites developed exclusively for the
company. The unique atmosphere creates a fun, family-oriented atmosphere
with awesome food and friendly service -- all at a reasonable price. For
more info: www.santafecattle.com.
Safe Harbor
Safe Harbor statement under the Private Securities Litigation Reform Act of
1995: Statements in this news release looking forward in time involve risks
and uncertainties, including the risks associated with the effect of
changing economic conditions, trends in the markets, variations in the
company's cash flow, competition, availability and cost of materials and
labor and suitable real estate locations, and other risk factors.
Media Contacts:
Paul Jankowski
Access Brand Strategies, Inc.
615-724-1049
paul@accessbrandstrat.com
