All But 4 Shells Restaurants Close

St. Petersburg Times | 9/25/2008

Shells Seafood Restaurants Inc., a Tampa Bay mainstay, closed its 10 remaining restaurants Wednesday and told the courts that it plans to permanently shutter the once iconic chain.

The company abandoned Chapter 11 restructuring plans announced early this month, opting instead to close after "exhausting its potential options," according to bankruptcy filings made Wednesday. Unable to secure enough cash and credit to stay open, the company on Wednesday filed for Chapter 7 liquidation.

Restaurants in St. Pete Beach, Brandon, Clearwater and Redington Shores were among those closed Wednesday. Four Shells restaurants that are independently owned, including two original branches in Tampa and another in Sarasota, are not part of the corporate bankruptcy and will remain open.

The chain, which once had 45 restaurants throughout the United States, suffered a steep decline this year. Revenue dived 22 percent in the quarter ending June 29, and the company said in August that there were questions about its ability "to continue as a going concern."

Company officials could not be reached for comment Wednesday. A note on the door of the closed Brandon location thanked guests for their patronage and advised employees with questions about their paychecks to call company headquarters.

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