Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Black-Eyed Pea Restaurants Announce Chapter 11 Bankruptcy Filing
Author: Joel R. Glucksman
Date: November 22, 2016
Key Contacts
Back
Recently, Black-eyed Pea restaurants announced that it had filed for Chapter 11 bankruptcy protection. According to National Restaurant News, the company plans to close a portion of its casual dining chain locations.
Black-eyed Pea falls into insolvency
The restaurant chain’s financial struggles have mounted over the last year. WFAA reported that 12 of the company’s restaurants were shut down in Texas last week in the wake of a significant sales decline and operating capital constraints over the last two years. These economic issues were the culmination of the struggles of its Black-eyed Pea’s parent company, Restaurants Acquisition I LLC.
The bankruptcy news represents a bad year
The parent company filed for Chapter 11 bankruptcy protection in December, which caused it to close on of its restaurant locations. According to National Restaurant News, Restaurant Acquisitions I LLC listed stark drops in revenues and capital, as well as back rent owed to several of its dining chain locations. In fact, occupancy expenses had become so expensive for the company’s chain locations that they exceeded revenues. This caused the company to close 15 of its locations, the Dallas Star-Telegram reported.
In its court documents, Restaurants Acquisition I LLC claimed debt liabilities ranging from $10 million to $50 million, compared to only between $1 million and $10 million in assets. Its debtors most notably included over $880,000 owed to US Foodservice and the IRS, which was owed a substantial amount in taxes.
As a result of its insolvency, Restaurants Acquisition I LLC eventually converted its Chapter 11 filing into a Chapter 7 liquidation. Reuters reported that since this time, the company has sold off portions of its remaining assets and closed, or intends to shutter, various other chain locations.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
The Black-eyed Pea restaurant chain isn’t the only business in the food industry having to recently file for bankruptcy. For more on this, check out:
- Major Mexican Restaurant Chain, Rita Restaurant Corp, files Chapter 11
- Dropping Fast Food Trend Sends Cosi into Bankruptcy
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.