Benzinga | Feb 13, 2021 12:27PM EST

Biglari's Steak 'n Shake Could File For Bankruptcy As Early As This Coming Week

Steak 'n Shake is exploring a possible bankruptcy to handle its debt liabilities as COVID-19 continues to thrash the restaurant business, according to sources who spoke to Bloomberg.

What Happened: The Indianapolis-based burger chain has hired FTI Consulting to advise on restructuring Steak 'n Shake's debt, including a $153 million loan due in March. Law firm Latham & Watkins LLP also also is helping the company.

The firms could move to put Steak 'n Shake in bankruptcy this coming week.

Parent company Biglari Holdings Inc (NYSE:BH) has said that it may refinance or pay off the debt. However, the company is also mulling an out-of-court settlement.

Why It Matters: Burdened with debt amid the COVID-19 pandemic, the food chain closed 82 restaurants in 2020.