Carolina Wings & Ribhouse, a locally born string of restaurants stretching from Irmo to the South Carolina coast, has filed for Chapter 11 bankruptcy protection from its creditors.
The voluntary petition, filed Nov. 9 in the United States Bankruptcy Court in Columbia, allows the restaurant to continue operating as owner George R. Schoolmeester seeks to reorganize millions of dollars in debt owed to nearly 100 creditors.
“It’s hard times; we want to re-organize and go on,” Schoolmeester said. “We plan to stay open.”
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Schoolmeester declined further comment.
According to bankruptcy records, the restaurant owes creditors between $1 million and $10 million.
Opened in 1996, Carolina Wings of America LLC lists debts of nearly $500,000 to international marketer and foodservice distributor Sysco in Columbia and more than $400,000 owed to the Internal Revenue Service.
Other major debts include nearly $100,000 to US Foodservice in Sumter, about $90,000 to a business capital advance company in Georgia and more than $50,000 owed to the South Carolina Department of Revenue.
Carolina Wings of America operated eight restaurants throughout South Carolina at the time of the bankruptcy filing, according to documents filed with the court. Seven full service restaurants are located in the Columbia area and one is located in Pawley’s Island.
The restaurants are known for their chicken wings, ribs and barbecue pork.
Under the United States Code, Chapter 11 bankruptcy generally allows corporations and partnerships to reorganize while continuing to operate, and pay creditors back over time.
The company employed 260 people at the time of its bankruptcy filing, according to court papers.
Carolina Wings is represented by H. Flynn Griffin III, of Anderson & Associates in Columbia.
Judge John E. Waites has been assigned to the case.
As the U.S. economy approached collapse in late 2008 and into 2009, economic struggles began in earnest for many businesses and individuals.
Chapter 11 bankruptcy filings spiked 62 percent in 2009 in South Carolina to 112 from 69 in 2008. The number of filings eased last year to 87.
The majority of Chapter 11 bankruptcies in South Carolina are individuals, not businesses, said Bill McCarthy, a Columbia bankruptcy attorney for nearly 30 years.
Without speaking to the specifics of the Carolina Wings filing, McCarthy said Chapter 11 bankruptcies primarily are driven by macroeconomic forces, and characterized by two factors: too much product chasing too few customers, or under-capitalized or under-managed business.
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