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Jillian's Entertainment Case Study
Letting the Good Times Roll
Background
Jillians Entertainment provides eclectic dining and multi-media entertainment venues across the United States. Inspired by its "Eat, Drink and Play" philosophy, Jillians incorporates a variety of restaurants, billiards, video game arcades, dancing and bowling facilities. The company owns and coordinates the operations of approximately 35 multi-venue dining and entertainment complexes across the country.
Due to increased competition within the restaurant and entertainment industries driven by changes in consumer tastes and eating habits, general economic conditions as well as population and demographic trends, Jillian's began to experience declining sales in 2002. Given the company's decreased access to liquidity, Jillian's was unable to take measures to reverse its decline in sales with reinvestments in existing facilities, marketing and promotion. As a result, Jillian's, together with 48 subsidiaries and affiliates filed for Chapter 11 protection in the Western District of Kentucky in May 2004.
Results
KCC was retained in Jillian's corporate restructuring to handle a range of administrative-support functions throughout the case. In conjunction with a team of legal and financial professionals including Kirkland & Ellis LLP and Houlihan Lokey, Howard & Zukin, KCC managed key claims administration and noticing functions to support the debtor's fast-paced restructuring process.
With a list of more than 60,000 known potential creditors, KCC helped to prepare and file the company's Schedules of Assets and Liabilities and Statement of Financial Affairs (SOFA). KCC also assisted in an unconventional solicitation process. To help accelerate the restructuring, Jillian's instituted a rolling record date to determine which creditors were entitled to vote on the Plan of Reorganization. The rolling record date allowed solicitation to commence prior to the general bar date for filing proofs of claim. KCC ensured that creditors who were entitled to vote received solicitation packages within days of filing a proof of claim, which enabled Jillian's to keep the process moving swiftly while the professionals focused on the confirmation of the Plan of Reorganization. Throughout the case, KCC also served all sale documents for potential bidders and other interested parties. Today, KCC continues its involvement in the case by administering data for numerous claims objections and plays a supporting role in the disbursement process.
Jillian's emerged expeditiously from Chapter 11 protection in December 2004, six months after its bankruptcy filing date. The company has since continued a strong nationwide presence and widespread popularity with locations throughout the country.
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