Chicken Restaurant Chain Files for Bankruptcy Protection

According to court documents, Party Fowl is delinquent in vendor, creditor, rent, and tax payments.

By Ashley Turner

Nashville-based hot chicken restaurant chain Party Fowl filed for bankruptcy protection, citing expansion timing issues and other factors that have snowballed debt. Austin Smith and Nick Jacobson own Party Fowl through six LLCs and have been in business since 2014. Nashville International Airport and Nissan Stadium are licensed locations. Other branches are located in Murfreesboro, Donelson, Franklin (Cool Springs), Chattanooga, and Destin, Florida.

After opening Cool Springs in 2020, Smith and Jacobson decided to expand to Chattanooga and Destin, according to documents filed with the U.S. Bankruptcy Court for the Middle District of Tennessee, per Nashville Post. According to the documentation, insufficient revenue has been generated at these two locations, putting financial strain on the owners and their other locations. COVID-19 was identified as a contributing factor.

Smith and Jacobson own the six Party Fowl restaurants through their LLCs, with chef Bart Pickens overseeing each menu. "It's a testament to the various economic incentive programs offered by the federal government that Party Fowl was able to survive this series of unfortunate events," the document reads, via Nashville Post. "What is even more remarkable is that, in spite of these challenges, Party Fowl was able to open its sixth location — in Destin, Florida — in early 2022."

"However, and unfortunately, the two newest locations — Chattanooga and Destin — have failed to gain a foothold and have been Party Fowl's two worst-performing locations. In addition to supporting these two locations, the other [four] Party Fowl locations have dealt with inflationary pressure, higher wages and turnover among staff, higher food costs and lower demand across the restaurant industry."

As noted in the court documents, Party Fowl is delinquent in paying some of its vendors, creditors, rent, and taxes. Under a Chapter 11 reorganization plan, the owners seek permission to postpone their "non-critical but highly damaging financial obligations" to accumulate sufficient funds to pay "priority and administrative claims."

According to the court document, Smith and Jacobson intend to file a Joint Plan of Reorganization for all six businesses prior to the 90-day filing deadline after the petition date (Jan. 9) for Chapter 11, Subchapter V.

"Party Fowl is Nashville through-and-through," Alex Payne, an attorney representing Party Fowl, said in an email statement to the Nashville Post. "Its current financial difficulties are not unique across the industry, but helping companies overcome these problems is why Chapter 11 exists.

"We look forward to helping Austin, Nick, and the rest of the Party Fowl team navigate this process. Our hope is that the reorganization will be quick and enable Party Fowl to emerge even stronger and able to serve its customers, and the broader community, for decades into the future."

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