Bar Louie filed for bankruptcy protection March 26.
For the second time in less than five years, Bar Louie filed for bankruptcy.
The casual dining franchise filed in early 2020 and again last week, stating Bar Louie reached a deal with a lender to reduce debt and restructure the business.
The latest Chapter 11 filing for Texas-based Bar Louie came March 26 in Delaware. In its filing, Bar Louie listed assets between $1 million and $10 million and its liabilities from $50 million to $100 million.
It claimed between 5,001 and 10,000 creditors.
The brand’s biggest debt is to U.S. Foods Dallas, a broadline food distributor, for $1.8 million. That’s followed by a $590,639 debt to Edward Don & Company, a food equipment and supply company; $148,182 owed to Produce Alliance, a food vendor; and $133,813 to SCP Northfield for rent.
Raines Feldman Littrell is Bar Louie’s general bankruptcy counsel for this case.
Bar Louie did not provide additional comment, but it put out a press release March 27 that said it will continue operations throughout the restructuring.
“This process is not expected to impact the company's day-to-day operations. Prior to the filing, Bar Louie closed underperforming locations to enhance its financial stability,” the brand wrote in the release. “The company has secured commitments from its lender for debtor-in-possession financing, ensuring it can maintain operations, complete the restructuring process, and meet obligations to employees and suppliers.”
In 2023, Bar Louie said a brand refresh would launch its comeback after it emerged from bankruptcy in 2020. Secured lender Antares Capital LP bought the brand in 2020 and now Trew Capital owns the brand.
Bar Louie's new restaurant design launched after its first bankruptcy filing in 2020.
CEO Brian Wright took over in 2022. Bar Louie spent a year after Wright’s appointment developing its food menu, because customers came in for cocktails and not food, Wright told Franchise Times in 2023.
Still leaning into its staple martinis, average unit volume for franchised Bar Louie restaurants not located in a hotel was about $3.2 million in 2022. The following year was about $3.1 million.
In 2023, Wright said sales were split evenly between alcohol and food. The franchise implemented a new restaurant design in some stores that kept the bar as the star of the show.
Prior to the 2020 bankruptcy, Bar Louie had 134 locations. Today it has less than 50, more than half of which are corporate owned.
The franchise closed several restaurants in Michigan, New Jersey and Ohio, according to local news outlets.
Detroit news outlet WXYZ obtained an internal memo sent to employees who worked at a now-closed location: "Making the decision to close a location is never easy but focusing our resources on our higher-performing locations was the responsible approach,” the memo read in part.