Popular Restaurant Chains Filing For Bankruptcy

The restaurant industry has been hit hard this year; with a majority of small, family owned businesses forced into financial hardship. In the earlier part of the year, all restaurants were required to modify operations, limit patrons, or forced to close down altogether for a specified period of time. The result of which has too often become financial insolvency, even for bigger companies. This week, a record number of restaurant chains have filed for bankruptcy protection to assist in their financial recovery into the New Year.

Ruby Tuesday

After closing nearly 185 locations since the start of 2020, Ruby Tuesday has filed for Chapter 11 bankruptcy protection to resolve its $56 million in debt liabilities.

Chuck E Cheese

Already carrying one billion in debt before 2020, Chuck E  Cheese closed all of its locations this year. The future of the four decade old company is uncertain.

California Pizza Kitchen

This summer, California Pizza Kitchen filed for Chapter 11 bankruptcy protection. The result of which has been a successful restructuring of the company’s debt; eliminating nearly $250,000 in debt obligations in a matter of months.

IHOP

Having kept all 50 of it’s at risk locations afloat all year, IHOP’s parent company sought Chapter 11 bankruptcy in May after seeing double digit drops in profits in the first two quarters of 2020.

These companies have one thing in common: financial insolvency. However, financial insolvency doesn’t have to be the end of a business. Similarly, financial insolvency doesn’t have to be the end of your small business, or family’s well being. As you can see from the decisions of these popular restaurant chains, filing for bankruptcy can help put you back on track. If your family or small business is experiencing difficulty making ends meet or paying the bills, contact one of our compassionate Houston bankruptcy lawyers today. We can walk you through your options for debt relief and help you develop a plan to regain financial peace in 2021.