A POPULAR gastropub is losing locations quickly after the second bankruptcy filing in its history.
Some customers are now forced to head elsewhere for their favorite food and drink items.
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Bar Louie, founded in Chicago in 1990 as a neighborhood tavern with an expansive menu, had first gone under about in January 2020, just before the height of the coronavirus pandemic.
While it restructured, 38 of its 134 locations at the time closed down nationwide.
It later remerged, but still struggled financially for the following years.
By the end of 2023, Bar Louie reported net losses of $14.6 million, a total that had about tripled from $5.3 million in 2022, per Bondoro.
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Annual revenue was also down about $2 million.
Now, the beloved chain finds itself in a similar position as five years ago, filing for Chapter 11 protection to the U.S. Bankruptcy Court for the District of Delaware on March 26, 2025.
It cited about $50 to $100 million in debt owed to creditors and assets between $1 million and $10 million.
DOWN FOR THE COUNT
Bar Louie said in its first-day declaration, which provides the bankruptcy court with an overview of the reasons for a business’s filing, that it faced “various financial and operational challenges, including a number of underperforming locations, increased costs of operation, and mounting macroeconomic pressures,” in recent years.
It could therefore not recover after the first bankruptcy.
The chain also requested that the court approve the termination of leases for at least 14 “underperforming” restaurants.
At the time of the filing, Bar Louie had 48 locations — 31 corporate and 17 franchised — in 19 states.
That’s less than half of what it had before the first bankruptcy.
The lease termination request was approved recently, per a press release.
Affected Bar Louie restaurants in Colorado, Ohio, Illinois, Michigan, Missouri, New Jersey, Tennessee, and Texas have already shuttered or are in the process of closing their doors, as The U.S. Sun previously reported.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
STAFF UNAWARE?
Some employees claimed this month that they arrived at work only to find a note on the door explaining that the Bar Louie location was permanently closed and they were out of a job, per a post from a local reporter on X.
It’s unclear if all the closures are franchise locations, corporate, or a mixture of both.
However, in the release confirming the deal Bar Louie reached to restructure, it noted that normal operations would continue at only its 31 corporate locations.
Given that information, it’s likely that the remaining three franchise restaurants are also shuttering for a total of 17.
The U.S. Sun has contacted Bar Louie for more details.
HEADING OUT
Bar Louie isn’t alone in its financial woes, as several casual dining chains have taken serious hits over the past year.
TGI Fridays notably filed for bankruptcy in November and has restructured while closing at least 100 restaurants.
Red Lobster found itself in the same situation last spring but emerged in September with former PF Chang’s CEO Damola Adamolekun at the helm.
Fan-favorite chain On the Border Mexican Grill & Cantina is also axing 70 restaurants nationwide as it navigates bankruptcy.
