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Tampa-Based Shells Restaurant Chain Files For Chapter 11

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MICHAEL SASSO

The Tampa Tribune

Published: September 3, 2008

TAMPA - Shells Seafood Restaurants Inc., a Tampa-based chain, filed for Chapter 11 bankruptcy protection in Tampa today, according to a filing with the Securities and Exchange Commission.

The brief filing states that Shells will continue to manage its restaurants under the jurisdiction of the bankruptcy court.

Chapter 11 allows a distressed company to reorganize finances while being protected from creditors. Shells has struggled for several years, and the news lately hasn't been good. President and Chief Financial Officer Warren Nelson resigned from those positions Friday. The company's stock fell to 4 cents a share Tuesday, down from 7 cents a share, and it fell to a penny a share on the bankruptcy news.

Shells lost $667,000 in the second quarter of this year, compared with a loss of $1.2 million in the second quarter of 2007. The company's sales fell 22 percent in the second quarter, dropping to $9 million from $11.5 million during the same quarter a year ago.

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