Steakhouse files under Chapter 11

Doc Holliday's Inc., the Spokane restaurant company that owns Doc Holliday's Steakhouse & Saloon, at 508 E. Third, which has been open just since early December, has sought protection from creditors in U.S. Bankruptcy Court here while it reorganizes under Chapter 11.

Doc Holliday's general

manager, Burt Shahan, says the filing will give the restaurant company time to get back on its feet after a string of financial setbacks. He says one potential investor in the company never provided money the company had expected, and costs to remodel the restaurant's building, which formerly housed Harry O's Groove Gallery restaurant and nightclub, exceeded budgeted amounts. He says the company also had problems with internal controls on money handling that resulted in missing funds.

"That really hurts when you're just starting out and every penny counts," Shahan says.

Court documents filed by Doc Holliday's list the company's debts at between $100,000 and $500,000, and also list 31 creditors. Creditors holding the 20 largest unsecured claims, which total about $120,000, include Washington Trust Bank; Douglas C. Olson, a former owner of the building the restaurant occupies; Alpine Electrical & Design, a Spokane electrical contractor; BMC West Corp., a Boise building materials supplier; and two other Spokane companies, Spokane Restaurant Equipment Inc. and Bartons Heating & Air Conditioning Inc.

Shahan says Doc Holliday's is working with a potential investor who might provide funds that would allow the company to pay off its debts immediately and emerge from bankruptcy.

"I believe we will pull out of this," he says. "We're here to stay and plan to keep the restaurant going." A positive review from a local restaurant critic last month has boosted business, he adds.