Pinstripes, the bowling-and-bocce “eatertainment” restaurant chain, is facing delisting from the New York Stock Exchange due to financial struggles. The company, which had gone public just over a year ago, has failed to meet the NYSE requirement of maintaining a market capitalization of at least $15 million for 30 consecutive days. As a result, trading of Pinstripes’ shares was suspended, leading to the decision not to appeal the delisting.

The Northbrook, Illinois-based company’s market capitalization stood at $7.9 million, falling short of the NYSE threshold. In response to this setback, Pinstripes has reached an agreement with Oaktree Capital Management for a $7.5 million loan to support its ongoing operations. Oaktree, an existing lender to the company, will become the majority equity holder as part of a recapitalization plan, assuming control of the board of directors while existing stockholders retain their ownership stakes.

Pinstripes’ challenges extend beyond financial metrics, with the company grappling with declining sales and operational issues. The chain, known for its large-scale venues, reported a significant drop in same-store sales, reflecting a broader trend of reduced consumer spending at food-and-games establishments. The departure of the company’s chief financial officer and non-compliance with loan covenants, particularly debt-to-EBITDA ratios, have further compounded its financial woes.

With $85 million in long-term debt and nearly $99 million in operating lease liabilities, Pinstripes recorded substantial losses in its recent financial quarters. The company’s delisting from the NYSE not only hampers its ability to trade shares but also poses challenges in raising capital from investors, limiting its financial flexibility. This development marks a swift turn of events for Pinstripes, which had gone public through a merger with a special purpose acquisition company (SPAC) in late 2023.

The broader context of the leisure and entertainment industry reveals similar struggles faced by competitors like Topgolf and Dave & Buster’s, indicating a challenging operating environment for experiential dining concepts. As Pinstripes navigates this critical juncture, the company’s future hinges on strategic restructuring efforts and operational improvements to regain financial stability and investor confidence in the highly competitive market landscape.