Tuesday, October 22, 2019

Babalu Sold

A federal bankruptcy judge approved the sale of all five Babalu restaurants to Spell Restaurant Group of Memphis Friday.  The parent company of Babalu, Eat Here, Inc., file bankruptcy in August.  Babalu opened its first restaurant in Jackson in 2010, offering Latin-inspired cuisine.  The restaurant quickly become very popular and a fixture on the Jackson foodie scene.




Local restaurateurs Bill Latham and David Roberts formed Eat Here in 2012 and sought to export Babalu's success to other cities.   They opened Babalu restaurants in Atlanta (2), Knoxville, Memphis (2), Chapel Hill, Lexington, and Birmingham.  JJ reported in August:

Eat Here also owned several Five Guys restaurants but sold them in 2015.  The company also owned Table 100 but sold that as well to the original owners, Mr. Latham and Mr. Robert.   The company obtained a $15 million line of credit in 2017 from Origin Bank.  Eat Here also issued unsecured notes to 35 investors for $3 million in 2015.  The notes are due in May 2020 and have a balance of $1.6 million.

Babalu grew too big, too fast, as the "rapid growth strained Eat Here's resources."  Several restaurants started strong but quickly faded soon after opening.   Eat Here signed leases for additional restaurants in Nashville, Charlotte, and Columbus but cancelled the openings.  Thus the company was stuck with expensive lease payments with no offsetting revenue.

The company has over 500 creditors.  Eat Here employes 567 people. Eat Here asked the Court's permission to keep paying the employees through bankruptcy.   Eat Here owes Origin Bank $5.9 million.  The Court approved several motions filed by Eat Here, including one seeking permission to obtain post-petition financing.  The restaurants will keep operating through bankruptcy. 

The remaining Atlanta restaurant closed Monday as it was not a part of the sale.  The purchase price is $3.62 million.  Spell does not assume any liabilities for Eat Here.

Spell operates Brookhaven Bar & Grill (Memphis),  Edward's (Rosemary Beach), La Crema (Rosemary Beach), Grits & Grind (Seacrest Beach), Saltwater Grill (Panama City), La Cocina (Seacrest Beach), and George's (Alys Beach).  

Kingfish note: The Fondren location does very well.  Don't.Screw.It.Up. 




30 comments:

Anonymous said...

Small plates- really small.

Wiseowl said...

good ridance

Anonymous said...

Fun location, meh food, good drinks, terrible service. (The last one also increases the table wait.)

My coworkers can’t be talked into going there. Maybe better mgmt will help.

Anonymous said...

Overrated.

Messick said...

"Babalu grew too big, too fast, as the "rapid growth strained Eat Here's resources." Several restaurants started strong but quickly faded soon after opening."


Anthony Bourdain mentions this problem as a common downfall among over-zealous restaurateurs.

Anonymous said...

The restaurants in Fondren are the types of places you can take your hayseed family from the boonies and they will be impressed.

Those of us that live here understand the service sucks, the food is overrated and over priced. And if you've ever been to an actual big city then even the atmosphere is unimpressive.

Anonymous said...

12:28, where in the world does the tight rolled high water jeans and fake workboot crowd "who lives here" go to eat?

Kingfish said...

I've always had a good meal. Taco Tuesday is solid. The steak on a stick, oops, I meant skewer, is tasty. It started the craze of making guacamole at the table. Never had a bad experience there.

Anonymous said...

I make better guac than they did, my wife even said so. I have to take her word for it, never ate there, everybody at the table thinks they have permission to sample off your plate.

Anonymous said...

Truth, Kingfish.
The rest of you have obviously never had a Babarita!

Kingfish said...

I remember the first two

Anonymous said...

Their tableside guacamole is wonderful. Baba-rita and Taco Tuesday are solid. Love the place.

Anonymous said...

12:36, now THAT’S funny!

Anonymous said...

Umm, 12:42, the "craze" of making guacamole at the table preceded Babalu's by at least two decades: El Chico used to do that way back when. Guess that predated the millenials.

Anonymous said...

Origin Bank has made so many bad loans..are they next to file Chapter 11? $5.9 Million down the drain? What other loans are non-performing? Just asking for a friend.

Anonymous said...

Interesting that while the rest of the world rates this dive in The Fondren as pitiful, at best, Kingfish comes along and says he always enjoyed it. What the hell is "table-side guacamole"? Can I get a serenade of Yellow Rose of Texas? Taco Tuesday my ass.

Anonymous said...

@12:36
Wouldn't you like to know. I won't ruin the authenticity by informing as unfashionably bigoted as yourself.

Anonymous said...

Lucy and Ricky Ricardo owned restaurants here?

Anonymous said...

If you want a good Taco Tuesday, go to Green Ghost. $2 apiece and they're pretty generous with the filling. Doesn't have the atmosphere of Babalu, I'll grant. Still, good food.

I think the County Line location is better than the Fondren one, but usually end up at Fondren because it's closer.

Ophelia said...

The food was okay, the outdoor tables were nice, but it was seriously overpriced. As for the tableside guacamole—always made me uncomfortable, to have to suspend table conversation awkwardly while politely watching something that should have been done back in the kitchen. I feel the same way about cherries Jubilee and bananas Foster. Spare us the theatrics, and just bring the food, please?

Anonymous said...

@ 4PM, what?? How did a comment about hipster dress code jump the shark to bigotry. Whoever responded to your comment is just probably trying to avoid judgmental people like you.

Busboy Back in the Day said...

@6:07 PM - when they make it in front of you at least you know that they didn't spit in it.

You think I'm kidding? I was a busboy in a resort restaurant in the early sixties. The chef was pissed at management and used to spit in the soup.

Anonymous said...

I once complained to a manager about really bad service by our waiter, who then returned and said never to talk about him behind his back in a really threatening manner. It was really creepy and I called Eat Here corporate to report. They never called back and I assumed they didn't care to address serious CS complaints. I haven't been back to Babalu since. It was coming off three occasions of good food but terrible service.

Anonymous said...

Wild Bill’s Bankrupt Grill

Cousin Dackbart Gabbart said...

Oh-I Feel Ya...but can you spare us the random capital letters and misplaced commas? And as an aside, allow me to inform you that it's entirely proper to continue your conversation in the sanctuary as the offertory occurs. Just fold that bill up tightly so nobody notices it's a ONE and not a TWENTY.

Anonymous said...

I am not a bankruptcy expert but what I gleaned from article is they owe the bank over 5 million dollars so they just declare bankruptcy, walk away and continue making money at Table 100? Is that how all of this works?

Anonymous said...

Always sounded like a place Fred Flintsone would frequent.

Unknown said...

Support your local restaurants people. Different strokes for Different folks. Diversity is good and Babalu played a big roll in growing what is now a happening area in Jackson.. Man you people like to hate.!

Anonymous said...

Overall, I like Babalu's. Food was decent to good on each occasion I had it. Service was good, and we always seemed to wind up there during a happy hour or food special, so it was not terribly expensive.

Messick said...

I don't think Babalu owned the establishment...



Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.