6 Major Restaurant Chains Just Filed for Bankruptcy
It’s been a rough year for certain restaurant chains, as economic factors and customer behavior changes have impacted profits and growth. As a result of these issues, some companies have been left with no choice but to file for bankruptcy protection in an effort to prevent complete disaster. Some restaurants have been on the Chapter 11 merry-go-round for years now, filing more than once in an effort to stem the tide of downsizing and closures. Here are six big restaurant chains that filed for bankruptcy just this year.
Bertucci’s
Massachusetts-based Bertucci’s filed for Chapter 11 on April 24, 2025, the third time the Italian chain has filed for bankruptcy protection. The chain is planning to pivot to a new type of approach in the future, focusing on a new fast-casual format called Bertucci’s Pronto. “For Bertucci’s longstanding and loyal patrons, the Bertucci’s you know and love is here to stay as well, just with a few less locations for now,” the company said.
Planta
Planta filed for bankruptcy in May, citing a need to cut costs as a result of customers not eating out as much as they used to. According to Bloomberg Law News, the chain has struggled to pay rent on locations, including over $613,000 for the West Hollywood, CA spot. “The bankruptcy petition indicates that funds will be available for distribution to unsecured creditors following the bankruptcy,” the outlet says.
Hooters
After years of decline, Hooters filed for bankruptcy in March 2025. The chain is hoping to address $376 million in debt by selling 100 restaurants to franchisees. “For many years now, the Hooters brand has been owned by private equity firms and other groups with no history or experience with the Hooters brand,” Neil Kiefer, CEO of the franchise group Hooters Inc., said in a statement. “As a result of these transactions, the Hooters brand will once again be in the hands of highly experienced Hooters franchisees and we will be well-positioned to return this iconic brand to its historic success.”
Bar Louie
Bar Louie filed for Chapter 11 protection on March 25, 2025, citing rising costs and changing consumer habits as reasons for financial collapse. In a press release announcing the filing, the company says the process “is not expected to impact the company’s day-to-day operations. Prior to the filing, Bar Louie closed underperforming locations to enhance its financial stability.”
On The Border Mexican Grill & Cantina
Tex-Mex chain On The Border Mexican Grill & Cantina filed for Chapter 11 bankruptcy on March 4, 2025, after closing down 40 underperforming locations. The company has 60 locations remaining and is hoping to restructure $19 million in “prepetition-funded debt.” The remaining locations will stay operational throughout the bankruptcy proceedings.
Sticky Fingers Rib House
Sticky Fingers Rib House filed for bankruptcy in March after years of financial issues. The chain closed down many locations during the pandemic lockdowns and never quite recovered. “Inconsistent leadership led to a decline in food quality and service and eventually a decline in sales. The company began closing restaurants,” the company says on its website. “In 2019, under new leadership, Sticky Fingers started making great strides in improving food quality and modernizing menus and plateware. Unfortunately, the economic impacts of COVID-19 put a halt to those improvements and the difficult decision was made to close 9 of the 11 remaining restaurants.”
