K&W Cafeterias closed its restaurants in North Myrtle Beach and Myrtle Beach on Monday, March 15th.
News of the closings saddened long time Grand Strand residents in both cities. The restaurants were favorites in the area for decades. Local families often gathered there for lunch after church each Sunday in the 70s, 80s and 90s. Regular clients met there for dinner weekly.
K&W Cafeteria Inc. received federal Bankruptcy Court permission last December 2020 and was allowed to delay filing its next proposed reorganization plan on March 31, 2021.
K&W, a staple of Southern comfort foods for 83 years, filed for bankruptcy protection Sept. 2 as the latest step in a corporate downsizing that began before the COVID-19 pandemic.
“While we were hopeful we would find a buyer for K&W Cafeterias, given the current COVID-19 climate, we were not surprised that a buyer did not come forward with an acceptable offer,” K&W president Dax Allred told the Winston-Salem Journal on Dec. 11.
“We are working with our attorney to finalize a reorganization plan to be presented to all parties of interest, where K&W will continue to operate.”
On Nov. 2, Kahn approved K&W’s request for an unidentified “stalking horse” bidder and to conduct an auction for its assets.
A stalking horse is the term used to describe a bidder who sets a minimum price for the assets. Companies hope that other bidders will then emerge with higher offers.
However, on Dec. 8, K&W said it postponed the auction for its assets, which had been set for Dec. 11.
K&W said it “evaluated the bids received, concluded that the bids were inadequate and canceled the auction.”
The financially challenged company is choosing to close operations across the South.