Bankruptcy is in the air as Bar Louie, an Addison, Texas-headquartered gastrobar chain has once again filed for bankruptcy. The filing comes after a number of Bar Louie restaurants in Detroit, Nashville and New Jersey have recently been closed, citing “various financial and operational challenges” as the deciding factor.
According to a March 27 press release announcing the bankruptcy, Bar Louie ensures patrons that the bankruptcy process “is not expected to impact the company’s day-to-day operations.” Furthermore, the chain noted that prior to the filing, “Bar Louie closed underperforming locations to enhance its financial stability.”
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The now 34-year-old restaurant chain was founded in Chicago, Illinois and currently operates 31 company-owned locations along with an additional 17 franchised locations across 19 U.S. states. As part of the bankruptcy process, Bar Louie has committed to closing at least 13 corporate-owned locations, leaving just 48 remaining for fans to visit.
"Inflationary pressures have caused consumers, generally, to cut back on dining out. At the same time, menu prices have risen to keep pace with increased food, utility and labor costs," Bar Louie’s chief administrative officer Leslie Crook wrote in the bankruptcy filing. "As a result, many of (Bar Louie's) restaurants have underperformed, causing a drag on financial performance and management attention."
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As we mentioned before, Bar Louie is no stranger to a bankruptcy filing. The chain previously filed for bankruptcy back in 2020, which resulted in its purchase by current owners, BLH TopCo. As of 2018, just two years before the initial filing, Bar Louie had over 130 locations to its name.
Bar Louie reportedly listed estimated assets totalling between $1 million and $10 million, as well as estimated liabilities of $50 million to $100 million. Additionally, Bar Louie’s largest creditor, US Foods, is reported to be owed more than $1.8 million by the chain.
While Bar Louie is currently the latest restaurant chain to file for bankruptcy, the brand is certainly not alone. Restaurants such as Hooters and Pollo Tropical are also among the fray. And while economic pressures are certainly building up with each progressing year, we can only hope these changes provide a path for our favorite restaurants to continue to serve the food we love for years to come.
Related: This Beloved Tex-Mex Chain Just Filed For Bankruptcy—Here's What's Happening
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