Bar Louie, the popular gastropub chain known for its craft cocktails and lively atmosphere, is facing another financial setback as it files for bankruptcy for the second time in just five years. Once a go-to destination for casual dining and late-night drinks, the chain is now struggling under mounting debt and shifting consumer habits. With multiple restaurant closures and a challenging economic landscape, can Bar Louie bounce back from this latest crisis? Here’s how the company got here and what could be next for the struggling chain.
Bar Louie Files for Second Bankruptcy Amid Widespread Closures
Bar Louie has filed for Chapter 11 bankruptcy protection for the second time in five years, just days after shuttering multiple locations across the Midwest and New Jersey. The filing, submitted on Wednesday, March 26th, in the U.S. Bankruptcy Court in Delaware, highlights the company’s deep financial struggles, with liabilities ranging between $50 million and $100 million—far outweighing its reported assets of $1 million to $10 million.
The gastropub chain owes over $1.8 million to major distributor US Foods, approximately $590,000 to supplier Edward Don, and $148,000 to Produce Alliance LLC, according to court documents from its Dallas-based parent company BLH TopCo.
As part of its restructuring efforts, Bar Louie is requesting approval to terminate leases for 14 underperforming and unprofitable locations in Tennessee, Ohio, Illinois, Missouri, Texas, Michigan, Colorado, and New Jersey. These restaurants had already ceased operations in the months leading up to the filing.
Additionally, the company is seeking to cancel employment contracts for Chief Operating Officer Michael Mrlik and Senior Vice President of Technology Roberta Frierson, stating that the agreements are no longer necessary. Court documents indicate that both executives had either exited the company or transitioned to new contracts before the bankruptcy filing.
Like many full-service restaurant chains, Bar Louie struggled to recover from the financial impact of the pandemic. In 2023, its sales declined by 2.3%, and it operated just 66 locations—less than half of the 134 it boasted at its peak in 2019, according to Technomic data. In a press release, Bar Louie mentioned it currently operates 31 corporate-owned locations across the country.
The company attributes its financial troubles to rising food and labor costs, as well as evolving consumer preferences that have reshaped the casual dining landscape.
What’s Next for Bar Louie?
Despite filing for bankruptcy a second time, Bar Louie will continue operating its remaining locations without disruption. The company has secured debtor-in-possession (DIP) financing from its lender, providing the necessary funds to sustain daily operations, fulfill commitments to employees and suppliers, and navigate the restructuring process.
As it works through this financial reset, Bar Louie remains focused on stabilizing its business and strengthening its long-term viability. The company aims to complete its restructuring and emerge from bankruptcy within 90 days, positioning itself for a more sustainable future.
Casual Dining Crisis: Bar Louie Joins Industry Giants in Bankruptcy
Founded in 1990 in Dallas, Bar Louie built its reputation on craft cocktails, beer, and elevated pub fare. Now, it has become the latest casualty in the struggling casual dining sector, following in the footsteps of Red Lobster, TGI Fridays, Buca di Beppo, and On the Border—all of which have filed for bankruptcy in recent years, citing a combination of pandemic aftershocks, inflation, and declining customer traffic.
One of the most notable bankruptcies in 2024 was Red Lobster’s filing on May 19th, which led to the closure of 120 locations. Despite the setbacks, the seafood chain officially emerged from bankruptcy in September of the same year. It has since introduced a rebranded menu featuring new dishes and returning favorites, aiming to revitalize the brand and attract customers.
Similarly, Italian chain Buca di Beppo sought Chapter 11 protection on August 4th, eventually securing approval to sell its 44 remaining corporate-owned locations to its lender, Main Street Capital Corp., for $27 million. TGI Fridays followed suit on November 2nd, filing for bankruptcy protection as it looked to offload assets, scale down its restaurant footprint, and exit costly leases. Meanwhile, Tex-Mex staple On the Border Mexican Grill & Cantina, owned by Argonne Capital Group, filed for Chapter 11 on March 4th after closing 40 underperforming locations.
As Bar Louie faces its own financial challenges, the question remains: Can it successfully restructure and avoid the fate of other struggling brands, or will it become another casualty of the shifting dining landscape? Only time will tell.