The 801 chophouse chapter 11 filing involves the parent company of the 801 Chophouse chain seeking to reorganize roughly $18.7 million in liabilities under court supervision, according to court documents reviewed by USA TODAY.
Management later confirmed the legal proceedings are aimed at the parent entity rather than the individual companies that operate the restaurants, allowing the high end steakhouse locations to remain open, honor guest reservations, and continue payroll, the company said.
Company officials attributed the parent company’s financial distress primarily to the closures of two concept locations, citing 801 Fish in Denver and 801 On Nicollet in Minneapolis as the key liabilities that drove the filing, and noted the Minneapolis location closed five months after opening.
The group emphasized its core Chophouse brand remains stable, saying eight 801 Chophouse locations continue to serve customers across Missouri, Kansas, Nebraska, Iowa, Colorado, and Virginia, and that the individual restaurant companies operating successfully are not impacted by the parent filing.
The filing was entered in the U.S. Bankruptcy Court in Kansas and triggers the automatic stay that prevents creditor actions while the parent company negotiates with lenders and develops a reorganization plan under U.S. bankruptcy law.
The family owned 801 Restaurant Group, founded in Des Moines, Iowa, in 1993, issued a formal statement clarifying the filing’s scope and describing its purpose as restructuring obligations for which the parent company has liability.
Impact And Outlook
The immediate operational impact appears limited because the companies that directly own and operate the restaurants are not in bankruptcy and there are no plans or need for them to file bankruptcy, the group said in its statement.
The Chapter 11 process gives the parent company breathing room to negotiate long term financial plans with lenders while a court supervised reorganization proceeds, and provides a legal mechanism to address fallout from the failed concept locations.
Company officials framed the filing as a targeted move, saying the purpose is to restructure specific obligations and that except for the two closed restaurants, Chapter 11 is not expected to affect the remaining locations.
