Nathan’s Famous Hot Dog Chain To Return $1.2M It Received in Rescue Loan

Under the Paycheck Protection Program, public companies should not request loans from the government but Nathan’s Famous hot dog chain did just that.

The company has said now in an SEC filing that it will be returning the $1.2 million that it received as a federal small business rescue loan.

According to the company, it filed before new guidance from the government said that public companies should not request loans. The loan was granted on April 21st according to the 8-K filing.

As a result of the new guidance, “the company has determined to repay and return the entire amount of the PPP loan to the lender.”

The filing also revealed that the company’s restaurants are being affected by the coronavirus pandemic and that
“Operations at our company-owned restaurants and our franchisees’ restaurants have been disrupted,” the company stated. “Only three of our four company-owned restaurants are currently open, and those three company-owned restaurants are only offering food through take-out and delivery as we are prohibited from offering dine-in seating and service at our restaurants. The majority of our franchised locations have been temporarily closed.”

Nathan’s however has also said that “we do not anticipate that the rapidly evolving COVID-19 outbreak will have a material adverse effect on our supply of hot dogs over the next several months.”

Nathan’s has a market cap of more than $250 million and sold over 700 million hot dogs last year, according to its website.

Disclaimer: We have no position in Nathan’s Famous, Inc. (NASDAQ: NATH) and have not been compensated for this article.