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13 restaurants and restaurant groups that filed for bankruptcy in 2020

Amid the coronavirus pandemic, many restaurants could not stay open and attempted to sell assets or units to get out of the black and investors pounced

Holly Petre, Assistant Digital Editor

December 14, 2020

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Once the coronavirus pandemic hit and the U.S. population realized it would last longer than the two-week quarantine everyone initially thought, it became clear that bankruptcies would be on the horizon for some.

Among independent restaurants, we saw declarations of bankruptcy from Stephen Starr, Maison Kayser, BarFly and more.

Some of the following brands were already in trouble before the pandemic. Months of indoor-dining restrictions, layoffs, the added costs of sanitation protocols didn’t help.

On Monday, By Chloe declared bankruptcy and is seeking a sale, despite an ongoing legal battle with the founder. The company cited coronavirus, and the brand’s CEO stepped down.

There has been interest from larger organizations and chains in acquiring smaller chains that have declared bankruptcy this year.

HopCat, which declared bankruptcy in June (citing COVID-related restaurant closures) was purchased just four months later. Congruent Investment Partners and Main Street Capital acquired all of parent company BarFly’s assets — including HopCat, Stella’s and Grand Rapids Brewing company — for $17.5 million.

Bruxie was also restructured in bankruptcy and acquired by TCGM Holding Company.

Some restaurant groups, however, didn’t receive the attention or funding to rebuild post-pandemic. Mr. Bing’s, a New York-based bing chain, closed all units and divested all assets after filing for Chapter 7 bankruptcy.

See which restaurants declared bankruptcy this year and which ones have been purchased out of bankruptcy.

About the Author

Holly Petre

Assistant Digital Editor

Holly Petre is a digital editor for Nation’s Restaurant News as well as the host of NRN’s podcast, Extra Serving, and producer for Informa Restaurant and Food Group’s other three podcasts, One On One by Food Management, Off the Shelf with SN and In the Kitchen with Bret Thorn. Holly holds a Bachelor of Fine Arts with a concentration in Sculpture, fibers and Material Studies and Ceramics from the School of the Art Institute of Chicago. A native New Yorker, Holly enjoys her place on staff as the resident pop-culture expert and millennial with a sassy attitude and great sense of style.

Holly Petre’s work on Nation’s Restaurant News and Restaurant Hospitality often covers marketing and trends, either aimed-at or examined-through the millennial mindset. Holly is responsible for introducing TikTok and Twitch to NRN and RH readers as well as explaining terms like “Karen” to staff and readers alike. She also spends her time on staff trying not to make every headline a pun.

Holly Petre hasn’t spoken at any events or on panels, but she is readily available with a killer shoe wardrobe and several witty quips.

 

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