Casual restaurant chains have faced economic problems leading to bankruptcies, asset sales, and closed locations.
Financial issues that have impacted restaurant chains include rising costs of labor, food, and supplies from inflation, increased interest rates on debt, and changing attitudes of consumers on dining out.
These issues have affected restaurants’ ability to remain profitable as they also deal with fierce competition for the dining dollar.
Related: Popular Mexican dining chain files for Chapter 11 bankruptcy
The most prominent casual restaurant chain bankruptcy in 2024 was Red Lobster’s filing on May 19, 2024. The company closed 120 restaurants but still operates about 545 locations.
Italian restaurant chain Buca di Beppo filed for Chapter 11 bankruptcy protection on Aug. 4 to reorganize its business with the support of its lenders.
The restaurant chain on Nov. 4 won approval to sell its 44 remaining corporate-owned restaurants to its lender Main Street Capital Corp. for a credit bid of $27 million.
Restaurant and bar chains file for bankruptcy
Iconic restaurant and bar chain TGI Friday’s filed for Chapter bankruptcy protection on Nov. 2, 2024, seeking to sell certain company assets, further reduce its restaurant footprint, and reject unfavorable leases and contracts.
The restaurant chain sold off its corporate-owned locations in bankruptcy auctions.
The company was forced to file for bankruptcy after a proposed sale to its U.K. franchisee Hostmore collapsed in September 2024. Hostmore owned 87 TGI Friday’s franchises and considered buying the parent company’s 92 corporate-owned location.
TGI Friday’s 122 franchised locations in the U.S. and 316 franchised units outside the U.S. did not file for bankruptcy.
The company had about 600 franchises in 55 countries, including 213 U.S. locations in 29 states before it filed for bankruptcy.
Not many major restaurant chains have filed for Chapter 11 in 2025 in the first three months, though franchisees of major chains have declared bankruptcy.
DMD Ventures, owner of six Twin Peaks franchise restaurant locations in Florida, filed for Chapter 11 bankruptcy protection on Jan. 6 for its affiliated entities DMD Florida Development 2 and DMD Florida Restaurant Groups C and D that own and operate two separate locations.
The Davie, Fla.-based franchises face a $12 million lawsuit filed by one of its creditors, Florida Restaurant Franchise Group, a commercial real estate development and holding company affiliated with Jafrejo Holdings.
And now, another classic restaurant and bar chain has filed for bankruptcy.
Bar Louie files for Chapter 11 protection five years after a previous filing.
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Bar Louie files for Chapter 11 protection
Popular restaurant and bar chain Bar Louie has filed for Chapter 11 protection to reorganize and close locations, facing financial distress.
Related: Another popular casual restaurant chain closes locations
The Addison, Texas-based “gastrobar” chain’s parent BLH TopCo LLC and four affiliates filed their petition on March 26 in the U.S. Bankruptcy Court for the District of Delaware, listing $1 million to $10 million in assets and $50 million to $100 million in liabilities.
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The debtor’s largest unsecured creditors include US Foods Dallas, owed about $1.8 million; Edward Don & Co., owed about $590,000; and Produce Alliance LLC, owed about $148,000.
Bar Louie operates a casual dining restaurant and bar chain known for handcrafted cocktails, appetizers, burgers, and other American cuisine.
The chain, which currently has 48 locations according to its website, had as many as 134 locations before filing for Chapter 11 bankruptcy in January 2020 and closing 38 locations.
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