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
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
How to Effectively Use Contracts to Manage Risk
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
How Can Trusts Be Used in Business Succession?
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Author: George McGowan
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.