Restaurant files for Chapter 11 bankruptcy due to labor dispute | The Colpitts Law Firm
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Bankruptcy May Be Your Option

Restaurant files for Chapter 11 bankruptcy due to labor dispute

It takes a great deal to create a successful business in Oklahoma and other areas of the country. A business needs dedicated employees who are willing to put in the effort to make it a success. However, there are other influences that could potentially harm the chances of long-term success. As a result, some businesses turn to Chapter 11 bankruptcy to help them manage their debts.

A restaurant in another state has recently taken such action. The restaurant, Church & State, is a French bistro that opened in 2008. While receiving good reviews, the business is reportedly struggling due to an ongoing labor dispute lawsuit filed by a former employee. That employee makes several claims against the business, including that wages were not paid. While some reports indicate that the restaurant attempted to settle the lawsuit for $150,000, the plaintiff reportedly declined the offer in the pursuit of $1 million and class action status.

Because of the financial toll of the ongoing dispute, the owners of the restaurant decided to seek Chapter 11 bankruptcy protection. A hearing is scheduled so that a plan to ensure that business continues to pay outstanding bills can be considered and approved. One of the restaurant's owners has stated that the business will remain open throughout proceedings and that it remains committed to its customers.

Some businesses in Oklahoma are familiar with the financial toll that an ongoing lawsuit can create. Owners are often left in the position of making difficult decisions to ensure the continued success of a business into which they may have poured their energy and savings. A professional with experience with Chapter 11 bankruptcy proceedings can help these businesses fully understand their options for managing their debt.

Source:, "Church & State Files for Chapter 11 Bankruptcy Amidst Ongoing Labor Lawsuit", Farley Elliott, July 24, 2017

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