A POPULAR American restaurant chain which rivals the likes of Olive Garden and Red Lobster has filed for bankruptcy.
Bosses at the Greek restaurant chain Opa! Authentic Greek Cuisine confirmed that they are planning to liquidate the company’s remaining assets in California.
Opa! Authentic Greek Cuisine, in Santa Clara[/caption]
The restaurant filed for bankruptcy on Friday, September 19, according to documents filed in the US Bankruptcy Court for the Northern District of California.
Molly Adams, the company’s Chief Executive Officer, her husband, Marcus Adams, and OPA Management Group have been listed as co-debtors, according to the court documents obtained by USA TODAY.
The company is understood to have 49 creditors in total with a debt ranging between $100,000 $500,000.
The documents also show that the company has between $100,000 and $500,000 in total assets.
Mrs Adams wrote in the bankruptcy documents that she met with legal and financial advisors and made the decision to file for bankruptcy and liquidate company assets.
She said: “It is desirable and in the best interests of the company, its creditors, and other parties in interest that a petition be filed by the company seeking relief under the provisions of Chapter 7 of Title 11 of the United States Code.
Opa! Authentic Greek Cuisine previously had six locations in California cities, including Campbell, Morgan Hill, Santa Clara and Walnut Creek, as well as San Jose, according to the company’s former website.
Opa! Authentic Greek Cuisine isn’t the only chain that has been struggling financially.
Beloved Mexican chain Abuelo filed for bankruptcy, plunging the future of its locations into jeopardy.
Execs of the chain, which has been part of the casual dining scene for more than 30 years, blamed a slew of factors that influenced the decision.
Chiefs lamented poor sales and a change in customer behaviour.
The chain has been battling strong headwinds in recent years, as reported by Restaurant Business.
Chiefs are working to clear debts between $10 and $50 million.
Sales reportedly dropped by 15.4% between 2023 and 2024.
A representative for the chain revealed the decision to file for bankruptcy is part of a “strategic restructuring process.”
“We will continue normal operations and remain committed to maintaining stability for our employees, vendors and customers,” they said.
“Throughout this time, our loyal customers can join us and expect the same quality and hospitality as we’ve always provided.”
At its peak, the business had around 40 stores, but bosses have gradually whittled down its numbers.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
