Item 8.01. Other Events.
On April 24, 2020, as a result of new guidance issued by the United States
Treasury Department and the U.S. Small Business Administration on April 23,
2020, J. Alexander's Holdings, Inc. (the "Company"), announced its intention to
return all funds received by its subsidiaries, J. Alexander's, LLC and Stoney
River Management Company, LLC, under the Paycheck Protection Program (the "PPP")
established by Congress under the Coronavirus Aid, Relief, and Economic Security
Act (the "CARES Act"), enacted on March 27, 2020. The Company believed its
subsidiary operating companies were eligible for the loans in accordance with
the special eligibility provisions for larger companies under provisions
included in the CARES Act and the applicable implementing guidance issued by the
U.S. Small Business Administration under the PPP that was available at the time
loan applications were submitted. The loans had been obtained to support the
goal in the legislation of providing financial assistance to restaurant-level
employees, including approximately 3,400 furloughed hourly employees that are
not presently assisting with the Company's carry-out programs, and to restore
the Company's workforce as quickly as possible once dine-in operations could be
safely resumed in accordance with applicable state and local government
guidelines.
In connection with the return of the PPP loan funds and the continued
uncertainty regarding definitive timelines for restoration of dine-in operations
at each of the Company's locations, the Company intends to take steps to secure
additional financing opportunities to support the Company's liquidity.
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements, which
include all statements that do not relate solely to historical or current facts,
such as statements regarding our expectations, intentions or strategies
regarding the future. These forward-looking statements are based on management's
beliefs, as well as assumptions made by, and information currently available to,
management. Because such statements are based on expectations and are not
statements of fact, actual results may differ materially from those projected
and are subject to a number of known and unknown risks and uncertainties,
including financial market conditions; the health and financial effects of the
COVID-19 outbreak; the impact of state and local restaurant closure orders; the
ability of the Company to restore its workforce and guest base once such orders
are lifted in the future; and other risks and uncertainties described under the
headings "Forward-Looking Statements," "Risk Factors" and other sections of the
Company's Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 13, 2020, as amended on April 17, 2020, and subsequent
filings. The Company undertakes no obligation to update
any forward-looking statements, whether as a result of new information, future
events or otherwise.
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