Butcher Boy owner: Business as usual during reorganization
Butcher Boy Meats, Deli and Catering owner Ken Jolly says his company’s recent Chapter 11 bankruptcy filing won’t affect operations at his south Reno and Sparks locations.
Jolly said that the bankruptcy filing was a move to give him some “breathing room” and allow him to catch up on debt. After 34 years at 1073 N. Rock Boulevard, Jolly last year opened a 17,000-square-foot facility at 7300 S. Virginia St., and he fell behind in repayment of the construction loan on that building.
He said he was misinformed by his bank about the financial requirements of the new building.
“I was told I needed only 10 percent for a down payment of the total loan value, and actually it was 30 percent. I would never have done this project if I had known that. I would have waited until I had enough money to do it,” he said.
Jolly says the Chapter 11 reorganization allows him about six months to catch up on payments. Both stores will remain open with no cutbacks in service or hours.
“We need some time to get organized and get all of our arrears paid,” he said. “But we are not going anywhere. We are going to keep both stores open. There is light at the end of the tunnel. Now I can pay all my debtors off, and that is the reason I filed. The Chapter 11 reorganization is letting us stay open and giving us five or six months so we can get back on our feet and keep our current stuff going.”
Jolly says sales at the new store have increased each month, but he lacked sufficient operating capital going into the venture because of the terms of the construction loan.
“When you get behind, things get worse and worse,” he said. “I was down to two choices: either close both stores or file Chapter 11. Now I have a financial plan where I know I can get out of it.”
Heather Ashbridge, who started with Nevada State Development Corporation in 2008, previously served in several roles with the organization, including assistant vice president and loan officer. She is based in NSDC’s Reno office.