Assistant city manager Dave Boyer confirmed Friday that the project, which has been under construction for several months, is now on hold.
F&H Acquisition Corp., which operates Bailey's, Fox & Hound and Champps Americana restaurants, filed for Chapter 11 bankruptcy in December. According to The Wall Street Journal, the company plans to find a buyer at a March 4 auction.
The company closed 24 restaurants in the wake of its bankruptcy filing, WSJ reported. Three Michigan Bailey's restaurants – in Canton, Dearborn and Troy – remain open.
In a permit application approved by city officials in October, 2012, the company estimated a $1.2 million investment in fixtures, furnishings and leasehold improvements to the space. Boyer said officials were very excited about the project, but there's nothing the city can do at this point.
"We have to sit back and wait and see what happens," he said.