Casual Dining Chain Files for Bankruptcy for a Second Time
Back in the 1990s and early aughts, Bar Louie, an upscale bar and pub chain, quickly expanded across the country. Usually located in urban and suburban markets, oftentimes in or near upscale shopping centers, the “Eat. Drink. Be Happy” spot serves up “great drinks” and “chef-inspired food” in a “comfortable atmosphere where you are encouraged to relax and hang out.” However, this week the brand announced the closure of several locations across the country and filed for Chapter 11 bankruptcy for the second time in five years.
The Chain Is in Massive Debt
On Wednesday, just days after closing multiple locations in the Midwest and New Jersey, Bar Louie filed for Chapter 11 bankruptcy in a Delaware court. According to the filings (per Restaurant Business) the chain has $50 to $100 million in liabilities with assets of just $1 to $10 million.
It Owes a Lot of Money to Distributors and Suppliers
According to the filing, which came from parent company BLH TopCo, based in Dallas, it owes more than $1.8 million to the big distributor US Foods and more than $590,000 to supplier Edward Don.
It Closed Several Locations Across the Country
The chain has closed several restaurants in recent months, and some in the last few days, located in Tennessee, Ohio, Illinois, Missouri, Texas, Michigan, Colorado, and New Jersey. As part of the filing, the company asked permission to reject the leases of those closed.
It Also Requested Cancellation of Employee Contracts
It also requested the cancellation of the employment contracts of heavy-hitting employees COO Michael Mrlik and SVP of Technology Roberta Frierson. According to the documents, both left the company or entered into a new contract before the filing.
Post Comment