The company announced Monday that it filed for Chapter 11. It came to an agreement with its lenders to purchase the chain through a bankruptcy sale. Bar Louie said that restaurants will operate in the “normal course of business” and expects to emerge from bankruptcy within 90 days.
Bar Louie has more than 90 locations across the United States. It recently shuttered 38 underperforming locations to “strengthen its operational and financial position.” Several locations closed in Ohio, Wisconsin, Michigan and Colorado, according to local media reports.
CEO Tom Fricke said in the release the company is profitable and focused on growth despite the closures.
“The sale through Chapter 11 will help us to focus on our profitable core locations and expand in areas that have a proven track record of success,” he said.
Suppliers and employees will continue to be paid throughout the company’s bankruptcy, Bar Louie said.