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Troubled times for Granite City

Granite City Food & Brewery Ltd., a restaurant group with three metro Detroit locations, filed Monday for Chapter 11 bankruptcy.

The company also plans to pursue a sale to KRG Granite Acquisition LLC for $7.5 million plus liabilities, pending U.S. Bankruptcy Court approval and an auction process set to end in February, according to a news release.

Granite City, a casual place for burgers, beer and brunch, has brewpubs in the Renaissance Center in downtown Detroit, in Troy along the Big Beaver Road corridor and in Northville. The 16,000-square-foot RenCen location opened in 2016 in a 20-years-vacant space at the northwest corner of the complex. The Northville and Troy restaurants were already open at that point.

Started in 1999, the company now has 25 Granite City restaurants in 13 states and four Cadillac Ranch All American Bar & Grill restaurants in four states (none of those in Michigan). It has closed seven restaurants, but said in the release that it expects to continue business "without interruption" through the bankruptcy case. The company has a $5 million loan that needs Bankruptcy Court approval to fund its operations until the bidding process.

The company has cited consumers' shift to online shopping and eating take-out at home for its difficulties keeping sales up in and around malls, according to Restaurant Business Online. It has also bemoaned growing competition from fast-casual restaurants, Restaurant Business reported.

Richard Lynch, board chairman and CEO of Granite City, said in the release that the board and management decided that the sale would be the "best possible solution" to the company's financial problems.

"We believe pursuing this path will provide value to our creditors, enable one or more future restaurateurs to operate our locations, and preserve hundreds of jobs," he said in the release.