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’scarry-out programs, and to restore the Company’s workforce as quickly as possible oncedine-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 ofdine-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 Form8-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 theCOVID-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 onForm 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.
