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Shells Restaurant Chain Seeks To Liquidate Assets

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By MICHAEL SASSO

The Tampa Tribune

Published: September 25, 2008

TAMPA - Most Shells Seafood restaurants shut down Wednesday as the Tampa-based chain gave up its quest to stay open, according to a bankruptcy court filing.

In a document filed Wednesday, Shells Seafood Restaurants asked U.S. Bankruptcy Judge Catherine Peek McEwen to convert the company's Chapter 11 bankruptcy case to a Chapter 7 case. Under Chapter 7, a company's assets are sold, or "liquidated." In a Chapter 11 filing, a company typically seeks new financing or otherwise restructures under protection from creditors.

Shells filed for Chapter 11 bankruptcy protection Sept. 2 and shut eight of its 18 restaurants across Florida. At the time, the company said it expected to seek new funding to keep its 10 restaurants open. That now has changed. In its motion Wednesday to convert to a Chapter 7, Shells says it was unable to find new financing and was unable to find a buyer for its restaurants.

Shells shut its 10 corporate-owned stores Wednesday, said Don Stichter, an attorney who represented Shells while it was under Chapter 11 bankruptcy court protection.

The only restaurants that remain open are four operated by a private group: on South Dale Mabry Highway in Tampa; on 30th Street North in Tampa; U.S. 41 in Sarasota; and in Melbourne.

Deborah Christen, a co-founder of the Shells chain, co-owns the remaining four restaurants and said she had no idea the corporate office would shut its 10 restaurants Wednesday.

She said she plans to revamp the menu at her remaining locations soon, returning to the original menu.

"We do plan to continue under the Shells name," Christen said. "We are in no way affected by this."

Reporter Michael Sasso can be reached at msasso@tampatrib.com or (813) 259-7865.

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