The 801 Restaurant Group filed for Chapter 11 to address about $18.7 million in liabilities, according to court documents reviewed by USA TODAY.
The company described the move as an 801 chophouse chapter 11 action focused on restructuring obligations at the parent level while keeping daily restaurant operations running.
The filing, entered in the U.S. Bankruptcy Court in Kansas, provides a stay against creditor actions as the group develops a reorganization plan under U.S. bankruptcy law.
The company later issued a formal statement to clarify the scope of the case, saying the legal proceedings are targeted at the parent entity rather than the individual businesses that manage day to day restaurant operations.
"The companies that own and operate the restaurants are not in bankruptcy and there are no plans or need for them to file bankruptcy," the 801 Restaurant Group said in its statement, and added that the individual restaurant companies operating successfully are not impacted by the 801 Restaurant Group's Chapter 11 filing.
Operational Impact And Reorganization Outlook
Company officials said all high end steakhouse locations will remain open, will honor guest reservations, and will continue to pay employees while the parent company undergoes a court supervised restructuring.
The group attributed its financial distress to the failure of specific concept locations, naming 801 Fish in Denver and 801 On Nicollet in Minneapolis, with the Minneapolis site reportedly closing abruptly five months after opening.
"The purpose of the Chapter 11 is to restructure these and other obligations for which 801 Restaurant Group has liability," the statement reads, and the company said it will continue negotiating long term plans with lenders as part of the reorganization process.
The 801 Restaurant Group emphasized that the core Chophouse brand remains stable, and eight 801 Chophouse locations continue to serve customers across Missouri, Kansas, Nebraska, Iowa, Colorado, and Virginia.
