TSL Express Daily News

Bar Louie has filed for Chapter 11 bankruptcy protection just a day after reports surfaced that several locations abruptly shutdown in Michigan and elsewhere, including Cleveland and New Jersey. The Addison, Texas-based chain, founded in 1990 and known as the "original gastropub" in the United States, sells handcrafted cocktails, burgers, appetizers, salads, and more. 

The company filed in the District of Delaware court Wednesday, listing assets between $1 million and $10 million compared to liabilities between $50 million and $100 million. Bar Louie and its four affiliated entities list between 5,001 and 10,000 total creditors in their filing, with US Foods as the largest creditor, owed more than $1.8 million.

Bar Louie cites pressures from rising food and labor costs, as well as changing consumer preferences for its challenges. The company plans to restructure to reduce its debt while maintaining operations, and indicates that funds will be available to creditors following the bankruptcy process. As of Wednesday, there were 48 locations listed on Bar Louie’s website, from 66 locations at the end of 2023, according to Technomic data. In 2018, it had more than 130 locations.

In 2020 — prior to the pandemic — the chain put itself up for sale after filing for Chapter 11 bankruptcy protection. In 2022, the company named Brian Wright as chief executive officer. Last year, the company brought on two new vice presidents to oversee franchise operations and franchise sales, respectively, and had unveiled a more contemporary restaurant design to accelerate growth.

Nation’s Restaurant News has reached out to Bar Louie for further comment.

This news follows a busy 2024 of restaurant bankruptcies — including major chains such as Red Lobster, TGI Fridays, Rubio’s, Buca di Beppo, Tijuana Flats, and World of Beer Bar & Kitchen. Activity has slowed a bit this year, though a few smaller chains such as On the Border and Sticky Fingers have filed for bankruptcy protection since January.