Latest news with #Chapter7
Yahoo
3 days ago
- Business
- Yahoo
Popular Kansas City dog bar files for Chapter 7 bankruptcy after closure
KANSAS CITY, Mo. — After announcing that its Berkeley Riverfront location would be closing in late July, Bar K has now filed for bankruptcy. On July 29, Bar K closed three locations in Kansas City, St. Louis and Oklahoma City. Shortly after, on Aug. 4, a petition for Chapter 7 bankruptcy was filed for the KC and STL locations. Chapter 7 bankruptcy refers to liquidation as opposed to reorganization. Char Bar opening new location in downtown Olathe Also on July 29, the landlord of Bar K's St. Louis location alleged that the property owed more than $200,000 in rent and demanded payment within 10 days. Bar K failed to do so before filing for bankruptcy. A similar situation happened in 2024, when the STL location was accused of owing nearly $300,000 in back rent. 'We faced the same severe economic challenges as the rest of the hospitality industry, including inflationary costs and expenses, an extremely difficult labor market, and sharply reduced consumer spending,' the company said in a news release last month, regarding its closure. Bar K also shared that the Kansas City location in particular was affected by recent large-scale construction projects along the riverfront. Things to do in Kansas City this weekend: Aug.1-3 After opening in 2018, Bar K opened in Kansas City, with the STL location arriving in 2021 and the Oklahoma City location in 2023. In 2024, the bar was voted the number one dog bar in the United States by USA Today and earned the number nine spot in 2025. Bar K and its related entities include Stay! At Bar K, with estimated liabilities ranging from $500,000 to $1 million – and Bear Bishop, with liabilities ranging from $100,000 to $500,000. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
Yahoo
3 days ago
- Business
- Yahoo
KCMO to decide whether earnings tax goes on November ballot
KANSAS CITY, Mo. — Wednesday at Kansas City City Hall, FOX4 talked to Mayor Quinton Lucas about whether the earnings tax will be decided on by voters in the city in November of 2025. 'It's not currently on the ballot. It's not currently planned for the ballot, and I think we have about two or three weeks to try to figure that out if we were to want to,' Mayor Lucas said. As Mayor Lucas alluded to, figuring that out must happen by August 26. That's the deadline if the city wants it to be on this November's ballot. The 1% earnings tax is levied on anyone who works in the city, regardless of where they live. Popular Kansas City dog bar files for Chapter 7 bankruptcy after closure Mayor Lucas said a lot is going on in Jackson County over the next three months. As of Wednesday, a recall election of Democratic County Executive Frank White was planned for September 30. Tuesday, November 4, Jackson County residents will be deciding on whether they want their assessor to be elected in future elections. 'You want to think about, 'How can you run a campaign?' Mayor Lucas said. 'Can you inform people well enough in time and frankly, what issues are happening right now that you don't want to get pulled into? There is a very robust tax conversation occurring right now in Jackson County and Platte County really, and that being, you know, the majority of Kansas Citians, you may not necessarily want to have a tax chat at the same time.' Besides talking to Mayor Lucas on Wednesday, FOX4 also talked to Show-Me Institute Senior Fellow Patrick Tuohey, who's not a supporter of the earnings tax. Other municipalities around the city don't have this tax. 'Kansas City needs to understand that it is competing with the metro areas around it to draw talent, to draw population, and it's not just the earnings tax that's chasing people away. It's crime. It's schools. It's infrastructure,' Tuohey said. 'If Kansas City is serious about being competitive, it really needs to think about all these things, the earnings tax included.' Mayor Lucas disagrees with the narrative that suburban cities with their new developments are competing with his city because of things like the earnings tax. 2025 primary election results across the Kansas City metro 'You go to a job because people treat you well, because you feel like you're doing outstanding work and because you're interested in what you do, your colleagues and all that surrounds you,' Mayor Lucas continued. 'Kansas City will continue to be a place that attracts great employers because we build great communities, because we invest in downtown, the plaza, so many other areas.' The last time the earnings tax was on the ballot for voters in the city, it easily passed in April of 2021. 77% of voters said yes. Just 23% said no. As of Wednesday afternoon, the earnings tax was not on the Tuesday, August 12, Finance Committee agenda. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword


Miami Herald
5 days ago
- Business
- Miami Herald
Fast-food chain franchisee closes, files Chapter 11 bankruptcy
Fast-food franchisees have battled economic challenges over the last three years, which have led certain chain operators to close restaurant locations and, in some cases, file for bankruptcy. Rising costs of operating driven by inflation, such as labor and food, are the top reason many franchisees have faced distress. Other common financial issues blamed for distress include fierce competition among dining chains and consumer reluctance to spend in uncertain times. Restaurant operators reporting higher annual sales in May 2025: 52%.Restaurant operators reporting higher annual sales in June 2025: 49%.Restaurant operators reporting sales decline in May 2025: 38%.Restaurant operators reporting sales decline in June 2025: 41%. Red flags were raised in June 2025, as 49% of restaurant operators reported a rise in same-store sales between June 2024 and June 2025, which was down from 52% reporting higher sales in May 2025, according to the National Restaurant Association. Related: Famous gunmaker files for Chapter 11 bankruptcy, closes As for restaurants reporting sales declines, more reported declines in June, with 41% reporting decreased sales, than in May, with 38% reporting declines. Former Panera Bread franchisee EYM Cafe of Texas LLC filed for Chapter 11 bankruptcy protection on Aug. 2 after it lost control of its 15 Houston-area Panera franchises in a court judgment. EYM Cafe of Texas listed up to $50,000 in assets and $10 million to $50 million in debts in its petition filed in the U.S. Bankruptcy Court for the Eastern District of Missouri. The Irving, Texas-based debtor's largest creditors include the Internal Revenue Service, owed over $904,000, and the Texas Comptroller of Public Accounts, owed over $124,000. Panera LLC on May 23, 2025, filed a lawsuit against EYM Cafe of Texas in the U.S. District Court for the Eastern District of Missouri for unauthorized operation of several Panera locations in Texas and unapproved use of its trademarks. EYM Cafe's franchise agreements had been terminated in March and May 2025 due to payment defaults, food safety violations, and brand standard breaches, according to Related: Major mattress retailer files Chapter 7 bankruptcy, closes stores A federal judge ruled in favor of Panera on June 17, issuing a permanent injunction and ordering EYM Cafe of Texas to stop operating under the Panera brand and remove all references to the restaurant brand's intellectual property by Aug. 21, QSR reported. The judge's ruling also imposed a two-year non-compete clause barring EYM owner Eduardo Diaz from owning or advising any competing dining business within five miles of a Panera location. Diaz has a history of fighting lawsuits and filing for bankruptcy on behalf of his companies' other fast-food restaurant franchises. EYM Pizza, which at one time operated 142 Pizza Hut locations in Texas, Wisconsin, Ohio, and Indiana, filed for Chapter 11 bankruptcy protection in the Eastern District of Texas on July 22, 2024. More bankruptcy Major iconic food brand files for Chapter 11 bankruptcyPopular Dairy Queen rival franchisee files Chapter 11 bankruptcyPopular vision care chain files for Chapter 11 bankruptcy The debtor sold 77 Pizza Hut locations and closed 65 locations it could not sell in the bankruptcy case. The franchisee had also been sued by Pizza Hut after it allegedly stopped paying franchise royalties when a forbearance period ended. EYM Cafe of Texas King. Diaz's KFC franchisee EYM Chicken closed 25 of its 47 locations in 2024, and his EYM Chicken of Indiana LLC entity filed for Chapter 11 protection in the Court for the Eastern District of Texas on June 14, 2025. Another Diaz franchisee, EYM King, was ordered to close 26 Michigan Burger King locations in March 2023 after the Burger King Corp. terminated EYM's franchise agreement, according to Restaurant Business at the time. Burger King had filed a lawsuit against EYM King in February 2023 seeking payment of unpaid royalties, advertisement payments, and other charges. Don't miss the move: Subscribe to TheStreet's free daily newsletter The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
6 days ago
- Business
- Yahoo
Here's What It Means When A Restaurant Declares Bankruptcy
On the list of stress-inspiring buzzwords, "bankruptcy" ranks pretty high. Declaring bankruptcy might seem like a closing sentence, but in reality, it can be a strategic move toward recovery. Still, in some cases, a bankruptcy declaration can mean that folks won't be able to chow down at their favorite eateries anymore. Feeling nervous that one of your go-tos might be on the rocks? There are a few tell-tale signs that a restaurant is about to go bankrupt to be on the lookout for. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership Single-location restaurants and larger chains like Quaker Steak & Lube, Ryan's buffet, Logan's Roadhouse, and more have filed bankruptcy in recent years. Chain or not, there are two main types of bankruptcy for restaurants to file: Chapter 7 and chapter 11. In chapter 7 bankruptcy, businesses shutter their doors, sell off their assets under the guidance of a judge, and are absolved of any outstanding debts. In the more complicated, multi-stepped Chapter 11 bankruptcy, businesses remain in operation while creditors and the restaurant agree on a plan for debt repayment. The chief appeal of declaring bankruptcy is that it immediately enacts a wave of financial protection over restaurants, halting collections and any outstanding lawsuits. From there, a thorough and often lengthy process begins in which restaurants work with lawyers and the court system to take stock of all their assets and figure out how best to allocate those assets to creditors. Read more: 9 Items To Avoid Ordering From LongHorn Steakhouse In Chapter 7 Bankruptcy, Restaurants Close Their Doors In chapter 7 bankruptcy, restaurants close (which can be sad and disappointing for the community), but they are also financially relieved of outstanding debt. When a way forward seems uncertain or unlikely, this can be the best move. Uncontrollable external factors can affect a restaurant's fiscal bottom line. In recent memory, the COVID-19 pandemic caused restaurant revenue to drop by as much as 80% (as reported by Modern Restaurant Management). Another external factor out of business' control might include rising operational costs; meat prices are currently at an all-time high in the U.S., with a 10%-12% year-over-year increase due to shrinking cattle sizes caused by climate change. Egg prices have also seen drastic fluctuations over the past year, a staple ingredient for restaurants that can suddenly cost a lot more per capita. Rent and utilities (particularly in high-rent areas like major metropolitan cities) can also weigh on businesses and are more systemic than easily fixable adversaries. The overall economic climate can also compound the issue, making recovery more or less possible for restaurants. Jonathan Carson, co-CEO of bankruptcy firm Stretto, notes that adverse economic factors on the consumer (i.e. student debt, the rent crisis, the labor revolution) also directly impact their ability to patronize restaurants and keep them open. As Carson told Fox Business, "The numbers are staggering and rising, and high interest rates don't help when it comes to the health of the consumer. ... The consumer is in a rough spot." Chapter 11 Bankruptcy Keeps Restaurants Open, But Might Come With Some Changes When restructuring and reorganizing are possible, chapter 11 bankruptcy enacts a shield of protection while restaurants get things sorted out. For chapter 11 filings, restaurants stay open while figuring out a way to become profitable again, including how long it will take them to repay each creditor. Declaring chapter 11 bankruptcy can be the right move for remediable internal issues, such as quality control, cash flow allocation, poor reviews, low foot traffic, meeting shifting consumer preference trends, and natural disaster recovery. Restructuring rather than liquidating doesn't mean that everything stays the same, however. A chapter 11 bankruptcy filing might come with a reduced or changed menu (as in the case of TGI Fridays) or cut staff. Red Lobster, for instance, filed for chapter 11 bankruptcy in 2024 and is now well on its way to recovery. Although, it's worth mentioning that chapter 11 bankruptcy protects businesses, not necessarily the employees -- and when Red Lobster suddenly closed dozens of lower-performing locations without warning, hundreds of employees were left without jobs. To cushion ultra-thin profit margins, some restaurants (like Texas Roadhouse, which hiked menu prices three times in less than a year) have taken to price raising as a strategy, which can harm foot traffic. On the flip side, bulking out profit margins by accruing mounting debts can also choke out new growth. Sometimes, chapter 11 bankruptcy can be the most painless way forward for restaurants. Read the original article on Tasting Table.


Miami Herald
6 days ago
- Business
- Miami Herald
Major mattress retail chain liquidates in Chapter 7 bankruptcy
The U.S. mattress and bedding market has struggled over the last year, as sales dropped in 2024 and in the first quarter of 2025, which has led to factory and store closures and bankruptcy filings. Sales for the first quarter of 2025 declined by 5.7%, totaling $2.4 billion, compared to $2.5 billion in the same period in 2024, according to the International Sleep Products Association's Bedding Market Quarterly, Furniture Today reported. Total units sold in the first quarter also fell by 11.2% year-over-year to 8.7 million units compared to 9.7 units in 2024. Related: Famous handgun maker files for Chapter 11 bankruptcy The association noted in the report that the sales decline in the quarter was impacted by "slowing economic growth, policy uncertainty, and stubborn inflation." The mattress and stationary foundation market in 2024 declined 7.7% in sales to $9.2 billion for the year, and dropped 8.8% in units sold to about 36.5 million units, compared to the previous year. First Quarter 2025 sales: $2.4 billion, 5.7% decline.2024 annual sales: $9.2 billion, 7.7% decline. The mattress and bedding industry's economic issues likely led a California-based retail chain to close its doors permanently. The parent company of mattress and bedding retail chain Mattress Land filed for Chapter 7 bankruptcy to liquidate and close all 15 of its stores in four Western states, including California, Nevada, Idaho, and Washington. The Fresno, Calif.-based mattress store chain's owner The Sleep Fit Corp. filed for Chapter 7 protection on July 17, after liquidating and shutting down all of its stores at the end of June, according to The Business Journal of Fresno. Related: Rapper Phora surprises fans with Chapter 11 bankruptcy filing Mattress Land, which was founded in 1996, operated its combination headquarters and retail store in Fresno, as well as stores in Clovis, Visalia, Bakersfield, Merced, Atascadero, and San Luis Obispo, Calif.; Carson City, Sparks, and Reno, Nev.; Spokane Valley and Spokane, Wash., and Coeur d'Alene, Meridien, and Nampa, Idaho. California: Fresno, Clovis, Visalia, Bakersfield, Merced, Atascadero, San Luis Carson City, Sparks, Spokane Valley, Coeur d'Alene, Meridien, and Nampa. The mattress retail chain's website and phone number were both disabled at last check on Aug. 3. Mattress Land's CEO, president, and owner is William J. Van Beurden, who is also chair of Kingsburg, Calif.-based Van Beurden Insurance Services Inc., The Business Journal reported. Mattress industry struggles also led AFM Mattress Company LLC, which operates 57 American Mattress stores, to file for Chapter 11 bankruptcy protection on July 6. More Bankruptcy: Major iconic food brand files for Chapter 11 bankruptcyPopular Dairy Queen rival franchisee files Chapter 11 bankruptcyPopular vision care chain files for Chapter 11 bankruptcy The Elk Grove Village, Ill., mattress store chain is likely restructuring debt and reorganizing its business, as its website shows it is still operating 35 stores in the Chicagoland area, five in Florida, eight in Indiana, 22 in Michigan, and five in Missouri. Mattress and bed distributor, CVB Inc., faced an involuntary Chapter 7 bankruptcy filing on July 23 in U.S. Bankruptcy Court for the District of Utah, made by six suppliers, citing about $3.5 million in unpaid debts. The involuntary Chapter 7 filing came months after the company faced a massive recall in September 2024 involving 137,000 of its Lucid brand platform beds that posed a serious fall and injury risk. Don't miss the move: Subscribe to TheStreet's free daily newsletter The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.