Another restaurant chain has closed locations in Michigan as it undergoes bankruptcy proceedings. According to the Nation’s Restaurant News, Bar Louie filed for Chapter 11 bankruptcy protection Wednesday and has permanently closed multiple restaurants this week.
In Michigan, the Auburn Hills and Livonia locations have been closed, leaving just the Clinton Township and Royal Oak locations operating in the state. Bar Louie restaurants in New Jersey and Ohio have also reportedly closed this week.
The Texas-based chain currently operates 48 locations in the U.S. according to the company website.
According to the bankruptcy filing, Bar Louie lists its assets at between $1 million and $10 million, but says liabilities are between $50 million and $100 million. Rising food and labor costs are the chief reasons behind the financial issues, the company says. Bar Louie says it will restructure to reduce debt while keeping restaurants open.
Bar Louie is just one of several national chains that have closed locations, filed for bankruptcy or both in recent months. Last year, TGI Friday’s filed for bankruptcy, while Red Robin confirmed this month it is closing dozens of locations. Earlier this month, Tex-Mex chain On the Border closed multiple locations in Michigan while also filing for bankruptcy.