Bar Louie Files for Bankruptcy, Closes Locations Amid Financial Struggles

WILMINGTON, Del. — Bar Louie, the Texas-based restaurant chain known for its gastropub style, has filed for Chapter 11 bankruptcy protection as it grapples with significant financial challenges. The filing occurred on Wednesday in the District of Delaware court. This move comes shortly after the chain shuttered 14 of its locations across several states, including Tennessee, Colorado, New Jersey, Ohio, Illinois, Michigan, Missouri, and Texas.

Founded in 1990, Bar Louie had been a popular destination for burgers, appetizers, salads, and handcrafted cocktails. However, the company now lists its assets between $1 million and $10 million while its liabilities range from $50 million to $100 million.

The bankruptcy filing underscores rising food and labor costs, as well as shifting consumer preferences, as primary factors contributing to the company’s financial distress, according to a report by Nation’s Restaurant News.

This marks the second time in five years that Bar Louie has sought bankruptcy protection. The first filing occurred in January 2020, when the company cited a lack of funds for necessary store refreshes, equipment maintenance, and modernization.

Currently, Bar Louie operates approximately 48 restaurants, a sharp decline from 130 locations in 2018. The recent closures include two locations in Michigan: Auburn Hills and Livonia. Presently, only the Clinton Township and Royal Oak locations remain open in the state.

In addition to Bar Louie, other restaurant chains such as Red Lobster, Tijuana Flats, and Buca di Beppo have also faced similar financial difficulties, filing for bankruptcy in recent months.

As part of its restructuring effort amidst the bankruptcy proceedings, Bar Louie aims to reduce its debt while keeping the remaining restaurants operational. This strategic move follows wider trends in the restaurant industry, where several chains have been forced to close locations or restructure to remain viable.