J Alexanders

Two weeks after deciding to return more than $15 million they received under the federal Paycheck Protection Program, the leaders of J. Alexander’s Holdings have begun talks with Pinnacle Bank to grow their revolving credit line by about that amount.

In a regulatory filing, J. Alexander’s executives say they expect later this month to be able to sign an amendment to their credit agreement growing their revolver from $1 million to $16 million. The West End-based company would pledge the mortgages on five of their restaurants as some of the collateral.

In its filing, J. Alexander’s also said it and Pinnacle bankers have agreed to a new set of loan covenants that will be effective through July of next year. The new measures focus mainly on revenue and call for J. Alexander’s to have at least $99.8 million in sales in its fiscal 2020 and grow its rolling 12-month sales to nearly $167 million by mid-2021. By way of comparison, the company’s 2019 revenues were $247 million.

As of last Thursday, J. Alexander’s had $15.7 million of cash on hand, down from about $19 million in late April and $26 million a month before that. To slow their cash burn rate, CEO Mark Parkey and his team also have started talks with landlords, vendors and others about deferring lease and contract payments.

Shares of J. Alexander’s (Ticker: JAX) fell 1.6 percent to $4.46 Monday. So far this year, they have lost more than half of their value.

This post originally appeared in our sister publication, the Nashville Post

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.