Oaktree to take majority stake in Pinstripes as recapitalization moves forward

Pinstripes Holdings, Inc., an experiential dining and entertainment brand, has taken a significant step toward financial restructuring by entering into a binding letter of intent with Oaktree Capital Management, L.P. The agreement is expected to provide Pinstripes with additional capital to support its operations, reduce financial burdens, and position the company for long-term expansion. The deal follows months of negotiations aimed at securing financial stability while maximizing value for stakeholders.

With Oaktree becoming the majority equity holder, the recapitalization will result in significant changes to the company’s governance and financial structure. Current stockholders will retain an interest in the business and receive warrants that could offer potential future value if Pinstripes successfully executes its strategic plan. The company’s board of directors has approved the agreement, which was recommended by a special committee composed of independent directors.

Why Is Pinstripes Seeking Additional Capital?

The decision to secure Oaktree’s investment deal comes as Pinstripes works to strengthen its financial position in an increasingly competitive hospitality and entertainment industry. Known for its unique blend of experiential dining, bowling, bocce, and private event spaces, Pinstripes operates large-scale venues that cater to multi-generational audiences. The business model relies on a combination of food and beverage revenue, event bookings, and recreational activities, making financial flexibility crucial for sustainable growth.

Industry experts highlight that financial restructuring in hospitality has become a common strategy for companies facing rising operational costs, evolving consumer preferences, and market volatility. For Pinstripes, the recapitalization agreement with Oaktree provides much-needed liquidity to maintain existing operations while planning for future store development.

What Does Oaktree’s Investment Mean for Pinstripes?

As part of the Pinstripes recapitalization, Oaktree has committed to an initial funding of $7.5 million in loan proceeds before the transaction is finalized. Additional capital will be made available upon closing, ensuring that the company has the necessary financial resources to execute its strategic initiatives.

Oaktree, a leading alternative investment firm with approximately $202 billion in assets under management, specializes in distressed debt and structured finance solutions. By assuming a majority equity stake in Pinstripes, Oaktree is positioning itself to influence the company’s direction, appoint new board members, and oversee operational improvements aimed at increasing profitability.

According to industry analysts, private equity-backed hospitality businesses often undergo restructuring to optimize cost efficiencies, improve guest experiences, and expand into new markets. The financial support from Oaktree signals confidence in Pinstripes’ business model and long-term growth potential, despite recent challenges.

Why Is Pinstripes Delisting From the NYSE?

Alongside the Pinstripes financial restructuring, the company is also undergoing a major transition in its public trading status. On March 5, 2025, the New York Stock Exchange (NYSE) determined that Pinstripes’ class A common stock no longer met the minimum market capitalization requirement of $15 million over 30 consecutive trading days. As a result, trading was suspended, and the exchange has initiated delisting procedures.

Rather than contesting the decision, Pinstripes opted not to appeal, signaling a shift in its financial strategy. The company’s shares have now transitioned to the OTC Pink Market, which is often used by businesses undergoing restructuring or seeking a more flexible trading environment.

Market observers suggest that the move to OTC trading could provide Pinstripes with a pathway to focus on internal financial recovery without the pressures of maintaining NYSE compliance. While the company has yet to confirm whether it will suspend its reporting obligations under the Securities Exchange Act of 1934, the shift away from the NYSE marks a pivotal moment in its corporate trajectory.

What Are the Next Steps for Pinstripes’ Business Strategy?

With the Pinstripes recapitalization with Oaktree moving forward, the company is expected to focus on operational improvements, cost management, and strategic expansion. The infusion of capital is likely to facilitate renovations, marketing efforts, and technology enhancements aimed at enhancing guest engagement.

Experts in hospitality and private equity investments note that companies undergoing financial restructuring often reassess their venue locations, pricing models, and customer experiences to align with market trends. In Pinstripes’ case, the company’s emphasis on high-quality dining and entertainment suggests that new investment could support innovations in service delivery, menu expansion, and digital booking solutions.

While the finalization of the Oaktree investment deal remains subject to regulatory approvals and customary closing conditions, industry analysts will be closely watching how Pinstripes leverages its newly secured financial resources. The transition to private equity ownership and the shift in its stock trading status signal a transformation aimed at securing long-term stability.

How Will Pinstripes’ Stakeholders Be Affected?

For existing investors, the issuance of warrants presents an opportunity to benefit from potential future growth, provided the company successfully implements its turnaround strategy. Meanwhile, employees, suppliers, and customers are likely to see continuity in daily operations as Pinstripes maintains its commitment to delivering a premium experiential offering.

Legal advisors and financial consultants involved in the transaction include Katten Muchin Rosenman LLP, representing Pinstripes, and Piper Sandler & Co., serving as investment banker and financial advisor. The Pinstripes special committee received counsel from Ropes & Gray LLP, while White & Case LLP provided legal representation to Oaktree.

The evolving financial landscape for Pinstripes and Oaktree will be a key area of interest as the company navigates its next phase of development. With financial restructuring in hospitality becoming increasingly common, Pinstripes’ ability to execute its strategy effectively will determine the long-term impact of its recapitalization.