Matchbox Food Group enters bankruptcy to complete $14 million sale

By Caroline Salls

Pittsburgh, Aug. 4 – Matchbox Food Group, LLC filed Chapter 11 bankruptcy Monday in the U.S. Bankruptcy Court for the District of Maryland.

Matchbox’s board said in a resolution filed with the court that the company and seven of its subsidiaries entered into a $14 million asset purchase agreement with Thompson Hospitality Corp. on July 22 to sell its intellectual property rights, its membership interest in Thompson Matchbox Ventures LLC and the assets of the sellers’ restaurants.

The company’s bankruptcy filing was a requirement of the asset purchase agreement.

According to court documents, Matchbox has up to $50,000 in assets and $50 million to $100 million in debt.

The company’s largest unsecured creditors are Egg Cream, LLC of Bethesda, Md., with a $10.47 million claim; EagleBank of Bethesda, Md., with a $9.82 million long-term loan claim and a $1.45 million short-term loan claim; Thompson Hospitality of Reston, Va., with a $6.3 million claim and a $2.49 million claim; Eaglebank of Bethesda, Md., with a $5.57 million PPP SBA loan claim; Potomac Investment Trust of Bethesda, Md., with a $3.78 million claim; Ashtray, LLC of Rockville, Md., with a $1.4 million claim; Tuna, LLC of Gaithersburg, Md., with a $1.09 million claim; and Michelle S. Lee of McLean, Va., with a $1 million claim.

McNamee, Hosea is representing Matchbox in its Chapter 11 proceedings.

Matchbox is a Reston, Va.-based restaurant operator. The Chapter 11 case number is 20-17250.

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