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
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
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.