The company filed their claims in April 2020, according to two mechanics lien affidavits filed with the Maricopa County clerk’s office on April 15th and with the Santa Clara County clerk’s office on April 3rd.
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Following these mechanics lien filings, Sustainable Restaurant Group, parent company of Bamboo Sushi, filed for Chapter 11 bankruptcy in May. A spokesman from Bamboo Sushi has yet to be reached for comment.
Contractors Place 1.6M Liens on Bamboo Sushi
Subcontractor Bargreen Ellingson Restaurant Supply and Design became at least the second contractor to file a mechanics lien against Bamboo Sushi as of April.
On April 23rd, the company recorded their $128.8k lien with the Santa Clara County clerk’s office after being hired directly by Sustainable Restaurants Group to provide food service equipment and installation for a Bamboo Sushi located in Santa Clara.
Shrader & Martinez Construction also filed a mechanics lien against the same Santa Clara location, claiming they are owed $852.8k from this project. The general contractor’s Phoenix lien totals $714k in unpaid work.
The exact dollar amount owed to these two contractors is a combined $1,695,920.05, according to the lien affidavits.
The fallout from Bamboo Sushi’s inability to pay Shrader & Martinez Construction has caused a ripple effect of financial troubles now trickling down the payment chain for subcontractors on both job sites in Phoenix and Santa Clara.
Subcontractor CNS Sawing & Breaking claims they are owed $13k from Shrader & Martinez Construction on the Phoenix Bamboo Sushi job site, according to a lien affidavit filed on April 6th with the Maricopa County clerk’s office. The Santa Clara Bamboo Sushi location involves a lien filed by Chris’ Plumbing, claiming they are owed $79.8k.
In total, Shrader & Martinez Construction is faced with $92,871.58 in mechanics liens debt amongst the two contractors. Shrader & Martinez Construction could not be reached for a comment.
Bamboo Sushi Files for Bankruptcy
Bamboo Sushi’s parent company, Sustainable Restaurants Group, recently filed for Chapter 11 bankruptcy on May 12, 2020, aiming to keep up operations as they look for a buyer. The bankruptcy was filed with the United States Bankruptcy Court for the District of Delaware.
According to the bankruptcy filing, Sustainable Restaurants Group also has a $375.7k unsecured claim with D. Kelly Construction, a prime contractor based in San Francisco, CA.
The largest unsecured claim against Sustainable Restaurants Group is from Oregon Venture Fund, which is owed $1.4M, according to the official bankruptcy filing. Sustainable Restaurants Group has estimated assets of at least $10M and estimated liabilities of at least $1M.
Contractors Put Restaurant Industry on Financial Watch
Bamboo Sushi and Sustainable Restaurants Group are not alone when it comes to financial trouble across the restaurant industry during the coronavirus pandemic.
CraftWork Holdings, parent company of Logan’s Roadhouse and Old Chicago Pizza & Taproom, was cleared by a bankruptcy court in May to solicit their remaining assets of $93M in waived debt and liabilities.
Since March, at least three liens have been filed against Logan’s Roadhouse by RoofingSource, a subcontractor based in Niles, IL. Two liens were filed against a location in Nashville, TN, and one was filed for a location in Orlando, FL. The three liens total $38.2k in unpaid work.
On May 29th, a $3.6k mechanics lien was filed against a Boston Market location in Sanford, FL, according to the lien affidavit filed with the Volusia County clerk’s office. Texas Restaurant Group, parent company of Panera Bread, also faces a $97.5k lien against a Panera Bread in San Antonio, TX. The lien was recorded on April 13th with the Bexar County clerk’s office.
Additionally, restaurant company Ruby Tuesday is in construction debt trouble.
NRD Capital, an Atlanta private-equity firm, purchased Ruby Tuesday in 2017 for $335M, which included at least $100M in previous debts the restaurant had accrued. According to Restaurant Business Magazine, NRD reported that there were 599 Ruby Tuesday’s operating through the U.S. in 2017.
Today, the magazine reports there are no more than 300 Ruby Tuesday’s open for business following the COVID-19 outbreak.
Ruby Tuesday currently owes at least $14.9k in construction debt following eight lien filings among two different contractors as of April 2020.