Pinstripes Holdings: From $520M SPAC Debut to Chapter 7 in Under Two Years

Pinstripes Holdings completed its business combination with Banyan Acquisition Corporation in December 2023 at a $520 million enterprise valuation. The eatertainment chain—combining Italian-American bistro dining with bowling and bocce—was delisted by the NYSE after market capitalization fell below the $15 million minimum threshold. By September 2025, Pinstripes filed chapter 11 with 10 of 18 locations already shuttered and approximately $143 million in secured debt, as detailed in the First Day Declaration. The company's stalking horse bidder—an affiliate of its largest secured lender—credit bid $15 million against those secured obligations under the Sale Motion. When no competing offers materialized despite 80 potential buyers being contacted, the case converted to chapter 7 liquidation 85 days after filing per the Conversion Order.

The Pinstripes Concept

Dale Schwartz founded Pinstripes in 2007 in Northbrook, Illinois, with an entertainment-dining concept. The model combined an Italian-American bistro restaurant with bowling lanes and bocce courts, targeting corporate events, private parties, and family entertainment. Unlike traditional bowling alleys, Pinstripes emphasized the food-and-beverage experience, with approximately 80% of revenue coming from dining and 20% from entertainment activities. Average location revenue reached approximately $7.4 million annually, while the capital intensity of entertainment build-outs meant high break-even thresholds.

Pinstripes pursued a growth strategy that relied on real estate partnerships rather than traditional private equity or debt. The company formed partnerships with major real estate developers including Hudson's Bay, Brookfield Properties, and Simon Property Group, which provided lease terms and sometimes direct capital in exchange for an anchor tenant that could drive foot traffic to their retail and mixed-use developments. In 2019, Pinstripes raised $25 million through this partnership model, supporting expansion plans. Schwartz articulated growth targets of 23 venues by the end of 2024 and ultimately 150 locations, which informed the SPAC valuation.

In June 2023, Pinstripes announced a business combination with Banyan Acquisition Corporation, a special purpose acquisition company. On December 29, 2023, the merger closed with Pinstripes listing on the New York Stock Exchange under the ticker PNST at a $520 million enterprise valuation, with gross proceeds totaling approximately $70 million supplemented by a $50 million loan from Oaktree Capital. The SPAC structure provided public company status with additional reporting obligations, while the business continued to face operating and cost pressures.

Performance Deterioration After IPO

After the NYSE debut, Pinstripes' financial performance deteriorated. By the third quarter of fiscal year 2025, same-store sales had declined 7.7%. The company reported food and labor cost inflation and implemented price increases, while customer traffic declined. The expansion locations underperformed projections, revenue and EBITDA became insufficient to cover debt service, and working capital needs exceeded available cash flow. The company's funding model that had enabled early growth did not resolve profitability issues.

The stock price decline continued through 2024. In December 2024, the NYSE commenced delisting proceedings for Pinstripes' warrants. On March 5, 2025, the NYSE suspended trading in the common stock after determining that market capitalization had fallen below the $15 million minimum required under Rule 802.01B, ending the NYSE listing about 18 months after the SPAC valuation. The day after delisting, Pinstripes announced a letter of intent for a strategic recapitalization with Oaktree Capital that would have provided an additional $7.5 million Tranche 2 loan and given Oaktree a majority stake, but that recapitalization never closed.

With the Oaktree deal failing to materialize and liquidity deteriorating, Pinstripes in January 2025 retained Piper Sandler as investment banker to explore strategic alternatives. The sale process contacted 80 potential buyers, of which 20 signed non-disclosure agreements, and no actionable offer emerged. Prepetition lenders issued default notices, forbearance agreements eventually expired, and Pinstripes filed chapter 11 in September 2025.

Pre-Petition Capital Structure

Pinstripes' capital structure featured a multi-lender arrangement in which Silverview Credit Partners held both first lien ($36.1 million) and second lien ($85.4 million) positions totaling approximately $121.5 million. Granite Creek Capital Partners held a minority first lien position ($14.95 million), while additional secured obligations came from an SBA loan ($350,000), landlord financing ($3.7 million), and financed bowling equipment ($2.6 million), bringing total secured debt to approximately $143.1 million. Beyond secured debt, Pinstripes carried approximately $47 million in unsecured obligations owed to vendors, landlords, and other trade creditors, plus $2.4 million in gift card liability. With secured debt exceeding disclosed asset ranges, recoveries for unsecured creditors were uncertain.

Store Closures and the Remaining Portfolio

Pinstripes closed 10 of its 18 locations simultaneously with the bankruptcy filing on September 8, 2025. The closures included complete regional exits in Texas (all Houston-area locations shuttered), Florida (Fort Lauderdale and Miami), Connecticut (Stamford), Kansas (Overland Park), New Jersey (Paramus), and the Chicago Streeterville location. The closures reduced the operating footprint ahead of the sale process, with leases at closed locations rejected, generating landlord rejection claims.

Eight locations remained open through the sale process: Northbrook, IL (flagship/headquarters), Oak Brook, IL, South Barrington, IL, Bethesda, MD (Pike & Rose), Georgetown/Washington D.C., Cleveland, OH, Edina, MN, and San Mateo, CA. The Illinois suburban cluster around headquarters included the Northbrook flagship location.

DIP Financing

Silverview Credit Partners, already the dominant prepetition secured lender, provided the debtor-in-possession financing necessary to fund the bankruptcy process under the DIP Financing Motion:

The DIP structure included a $540,000 roll-up converting a prepetition bridge loan into post-petition obligations on a dollar-for-dollar basis, with interest accruing at 10% per annum on a payment-in-kind basis. With Silverview providing both the prepetition secured debt and post-petition DIP financing, the lender had significant influence over the restructuring process. The facility reflected the expedited timeline expected: 50-66 days from filing to sale closing, with DIP milestones enforcing that schedule. The Interim DIP Order entered September 10, 2025, just two days after filing; the Final DIP Order came October 6, 2025; and the DIP Amendment Order on November 3, 2025, extended the maturity to accommodate the closing timeline.

The 363 Sale Process

The bankruptcy contemplated a section 363 sale from inception, with SilverStrike, LLC—an affiliate of Silverview Credit Partners—serving as stalking horse bidder. SilverStrike submitted a credit bid of $15 million against the approximately $121 million in first and second lien obligations held by Silverview per the Sale Motion, meaning it would acquire substantially all operating assets by canceling debt rather than paying cash. The stalking horse agreement included bid protections designed to establish a floor while encouraging higher offers, and prepetition marketing contacted 80 parties without generating offers.

Hilco Corporate Finance served as investment banker during the chapter 11 case, continuing the marketing efforts begun prepetition by Piper Sandler. The Bidding Procedures Order approved September 19, 2025, established deadlines for qualified bids and an auction date of October 14, 2025, but no qualifying bids materialized. The auction was cancelled, and SilverStrike was designated the successful bidder.

The bankruptcy court entered the Sale Order approving the sale to SilverStrike on October 31, 2025, with closing occurring November 10, 2025. The buyer acquired substantially all operating assets free and clear of liens, claims, and encumbrances, with selected leases assumed and assigned while others were rejected. The sale transferred the eight remaining operating locations to SilverStrike, which continued operating the Pinstripes brand under new ownership, and the $15 million credit bid left a deficiency relative to Silverview's secured claims.

Conversion to Chapter 7

With the sale complete, remaining assets in the bankruptcy estate were limited, and sale proceeds were not sufficient to fund distributions to unsecured creditors after satisfying administrative expenses and priority claims. No plan of reorganization was filed, and the same day the sale order was approved (October 31, 2025), Pinstripes moved to convert the case from chapter 11 to chapter 7 liquidation.

The Conversion Order entered November 21, 2025, with the chapter 7 conversion becoming effective December 2, 2025. The case moved from petition to conversion in 85 days. David W. Carickhoff was appointed chapter 7 trustee to administer the remaining estate, with responsibilities including pursuing any potential avoidance actions, administering administrative claims, and distributing any remaining proceeds according to bankruptcy priority. Distributions to unsecured creditors depend on the outcome of chapter 7 administration.

Disputed Matters and Objections

ComEd, Pepco, and CEI—utility providers at various locations—objected to the debtors' proposed adequate assurance arrangements for continued utility service, deeming the proposed bank account structure unacceptable in both form and amount, though settlements ultimately resolved these objections. Multiple landlords raised objections to lease assumption and assignment, including Federal Realty OP LP, 30 West Pershing LLC, RPT Realty LP, and Arboretum Holdings LLC, with issues including disputed cure amounts, inadequate assurance that SilverStrike could perform future lease obligations, and shopping center use restrictions applicable to lease assignments. Some leases were assumed and assigned to the buyer; others were rejected, generating landlord claims that joined the unsecured creditor pool.

Produce Alliance, LLC raised claims under the Perishable Agricultural Commodities Act, asserting that certain produce receivables were subject to a PACA trust and should not have been treated as cash collateral, though the objection was ultimately withdrawn. A pre-petition action pending in Delaware Chancery Court involving Middleton Pinstripes Investor LLC and Middleton Pinstripes Investor SBS LLC sought relief from the automatic stay to amend their complaint to add claims against non-debtor defendants, and the court granted limited stay relief to permit that amendment.

Eatertainment Industry Context

Eatertainment combines dining with entertainment activities—bowling, arcade games, golf simulators, axe throwing, and similar attractions. The sector expanded during the 2010s as concepts like Topgolf and Dave & Buster's demonstrated that experience-based dining could command premium pricing and drive traffic to retail locations. The model carries challenges: build-out costs for entertainment amenities exceed traditional restaurant investments, specialized equipment requires ongoing maintenance and periodic replacement, and high fixed costs mean break-even thresholds are elevated, requiring consistent traffic to generate returns.

Eatertainment sits in the discretionary spending category. Pinstripes faced these headwinds without the scale advantages enjoyed by category leaders—Topgolf operates over 90 venues globally with significant brand recognition, and Dave & Buster's operates more than 150 locations with established supply chain and operational infrastructure. Pinstripes' 18 venues lacked the scale to absorb cost pressures effectively.

Pinstripes' SPAC transaction is part of the 2021-2023 period in which many companies went public at valuations based on projected growth. In Pinstripes' case, the NYSE delisted the stock after market capitalization fell below $15 million about 18 months after the $520 million valuation.

Professional Roster

The debtors engaged Young Conaway Stargatt & Taylor, LLP as lead counsel, CR3 Partners, LLC (James Katchadurian) as CRO, Hilco Corporate Finance, LLC as investment banker, and Epiq Corporate Restructuring, LLC as claims and noticing agent. Ropes & Gray LLP represented a special committee of the board of directors during the sale process, providing independent oversight given the lender-controlled dynamics. Ordinary course professionals included Cirgadyne Inc. dba LiquorLicense.com (liquor license matters) and The Tanzillo Law Group, LLC (additional counsel). David W. Carickhoff was appointed chapter 7 trustee.

Case Timeline

Creditor Recovery Analysis

The economics of the Pinstripes case left little ambiguity about creditor outcomes:

The $15 million credit bid against approximately $143 million in secured debt meant deficiency claims would join the unsecured creditor pool. Gift card holders faced the same uncertain prospects as other unsecured claimants.

Restructuring Implications

The case highlights the gap between Pinstripes' $520 million SPAC valuation and the later delisting and chapter 11 filing. The company carried public company obligations while operating a capital-intensive concept with limited scale.

Not all eatertainment concepts failed in 2024-2025, but operators without strong unit economics and geographic focus faced pressure. Pinstripes expanded into multiple markets while fixed costs remained elevated, and the real estate partnership model that enabled early growth did not resolve profitability challenges.

When debt exceeds enterprise value, secured lenders typically control restructuring outcomes. Silverview's position as both prepetition secured lender and DIP provider, combined with the credit bid, allowed Silverview to acquire assets without third-party bids. Equity and unsecured recoveries were limited.

Frequently Asked Questions

Why did Pinstripes file for bankruptcy?

Pinstripes faced multiple pressures: consumer spending pullback on discretionary entertainment, food and labor cost inflation, same-store sales declining 7.7%, expansion locations underperforming projections, and approximately $143 million in secured debt. The NYSE delisted the stock in March 2025 after market capitalization fell below $15 million, and the company filed chapter 11 in September 2025.

What happened to Pinstripes locations?

Ten of 18 locations closed simultaneously with the bankruptcy filing, including all Texas and Florida venues, plus locations in Connecticut, Kansas, New Jersey, and Chicago's Streeterville neighborhood. Eight locations remained open through the sale process, including the Illinois suburban cluster around headquarters and venues in Maryland, Washington D.C., Ohio, Minnesota, and California. These locations continue operating under SilverStrike's ownership.

What is eatertainment?

Eatertainment refers to restaurant concepts that combine dining with entertainment activities such as bowling, bocce, arcade games, golf simulators, or similar attractions. Pinstripes featured Italian-American bistro cuisine alongside bowling lanes and bocce courts. Revenue typically splits 60-80% food and beverage, 20-40% entertainment. Major category players include Dave & Buster's, Topgolf, and Main Event.

What happened to SPAC investors?

SPAC investors saw the enterprise valuation fall from $520 million at the December 2023 IPO to delisting in March 2025 for failing to maintain a $15 million minimum market cap. Equity was cancelled in the chapter 11 proceeding with zero recovery.

Who bought Pinstripes?

SilverStrike, LLC—an affiliate of Silverview Credit Partners, the dominant prepetition secured lender—acquired Pinstripes' operating assets through a $15 million credit bid against approximately $121 million in first and second lien debt. No competing bids emerged despite 80 potential buyers being contacted. The acquisition closed November 10, 2025.

Why did the case convert to Chapter 7?

Sale proceeds were insufficient to fund any distribution to unsecured creditors after satisfying administrative expenses and priority claims. No reorganization plan was filed, and the case converted to chapter 7 liquidation 85 days after filing.

What do creditors recover?

Secured lenders face deficiencies: the $15 million credit bid against $143 million in secured debt left approximately $128 million in deficiency claims. Unsecured creditors—including trade vendors, landlords with rejection claims, and gift card holders—face minimal to zero recovery as the estate proceeds through chapter 7 administration.

What was the DIP financing structure?

Silverview Credit Partners provided a $6.2 million (as amended) debtor-in-possession facility at 10% PIK interest with a 66-day maturity. The facility matched the expedited sale timeline, and a $540,000 prepetition bridge loan was rolled into the DIP on a dollar-for-dollar basis.

Will Pinstripes continue operating?

Yes. Eight locations continue operating under SilverStrike's ownership following the November 2025 sale closing. The Northbrook flagship, Illinois suburban locations, and select venues in other markets maintain the Pinstripes brand and concept. However, the operating company is now a private entity separate from the bankruptcy estate.

What lessons does Pinstripes offer for the eatertainment sector?

Pinstripes shows how SPAC valuations can diverge from operating performance, how capital-intensive concepts face pressure without scale, and how lender control increases when debt exceeds enterprise value.

Who is the claims agent for Pinstripes Holdings?

Epiq Corporate Restructuring, LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

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For more analysis of restaurant and entertainment sector restructurings, visit the ElevenFlo bankruptcy intelligence blog.