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The informal restaurant sector has suffered financial issues during the last 12 months, with a number of eating chains closing a number of areas and submitting for chapter.
A lot of the chains with monetary difficulties have confronted large debt obligations with funds that turned a burden to fulfill, as rates of interest rose and inflation elevated the prices of labor and meals merchandise.
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A number of restaurant chains wanted to file for chapter to reorganize their companies and restructure debt, and in some instances, offered their property to fulfill their debt obligations.
Related: Popular arcade restaurant chain files for Chapter 11 bankruptcy
Common seafood chain Purple Lobster filed for chapter in Might 2024, closing about 187 eating places. The eating chain emerged from Chapter 11 in September 2024 and now operates about 478 areas in 44 states, in response to its web site.
Italian restaurant chain Buca di Beppo filed for Chapter 11 chapter safety on Aug. 4, 2025, to reorganize its enterprise with the assist of its lenders. The restaurant chain on Nov. 4 gained approval to promote its 44 remaining corporate-owned eating places to its lender Most important Avenue Capital Corp. for a credit score bid of $27 million.
Traditional bar and grill chain TGI Fridays had 161 U.S. areas when it filed for Chapter 11 chapter on Nov. 2, 2024, to reorganize. The quantity additional plummeted over the following 5 months to 85 U.S. areas on April 24.
The corporate’s location depend declined from 550 franchise areas in 55 international locations to 461 eating places in 44 international locations.
Restaurant chains file chapter in 2025
Struggling Mexican restaurant chain On The Border Mexican Grill & Cantina had about 120 areas originally of this 12 months and closed or vacated 40 non-performing shops on Feb. 24 due to issues with lease and/or monetary efficiency
On The Border filed for Chapter 11 chapter on March 4, 2025, with plans to promote its property to its prepetition bridge mortgage lender. The restaurant chain presently has 60 areas operated by OTB Holding, which is 100% owned by personal fairness agency Argonne Capital Group’s affiliate Borders Holdings, and 20 others run by franchisees.
Common restaurant and bar chain Bar Louie filed for Chapter 11 safety on March 26 to reorganize and shut areas, dealing with monetary misery.
The Addison, Texas-based “gastrobar” chain’s guardian BLH TopCo LLC and 4 associates filed their petition within the U.S. Chapter Court docket for the District of Delaware, itemizing $1 million to $10 million in property and $50 million to $100 million in liabilities.
Bar Louie operates an informal eating restaurant and bar chain recognized for handcrafted cocktails, appetizers, burgers, and different American delicacies. The chain, which has 48 areas in response to its web site, had as many as 134 areas earlier than submitting for Chapter 11 chapter in January 2020 and shutting 38 areas.
Picture supply: Shutterstock
Restaurant chain Planta information for chapter
And now, the proprietor of fashionable nationwide plant-based informal restaurant chain Planta has filed for Chapter 11 chapter safety together with 17 associates, searching for to reorganize its enterprise.
Related: Classic auto parts company files for Chapter 11 bankruptcy
Miami Seaside-based CHG US Holdings, which operates 18 Planta restaurant areas throughout the nation in cities corresponding to New York, Chicago, and within the Los Angeles space, filed its petition on Might 12 within the U.S. Chapter Court docket for the District of Delaware, itemizing $50,000 to $100,000 in property and $10 million to $50 million in liabilities.
Extra chapter:
- Iconic auto repair chain franchise files Chapter 11 bankruptcy
- Popular beer brand closes down and files Chapter 7 bankruptcy
- Popular vodka and gin brand files for Chapter 11 bankruptcy
The debtor’s largest unsecured collectors embody landlord 8461 Melrose Avenue, owed over $613,000; regulation agency Saul Ewing Arstein & Lehr LLP, owed over $316,000; landlord 13 W 27 Leasehold LLC, owed over $203,000; landlord Friedman Properties, owed over $180,000; and Baldor Specialty Meals, owed over $176,000.
Funds will likely be accessible to pay unsecured collectors after administrative bills are paid, in response to the petition. The debtor is searching for joint administration of all 18 instances.
Related: Another major healthcare company files Chapter 11 bankruptcy