The owners of Daphne’s Greek Café have filed for bankruptcy protection under Chapter 11.
Despite the bankruptcy filing, the restaurant said that operations will continue as normal at all 69 of its locations.
The filing comes more than a year after the San Diego-based company began talks with its lender with the hope of restructuring their loan. Unfortunately, the company was unsuccessful in securing new loan terms.
In its bankruptcy filing, the company listed between 1,000 and 5,000 creditors, and estimated its assets and liabilities to be somewhere in between $10 million and $50 million.
George Katakalidis, chief executive of Fili Enterprises, the company that owns Daphne’s, vowed to keep the reorganization process short.
“We have a great business, and we didn’t want this to interfere with the business. Chapter 11 will speed up the negotiation,” said Katakalidis.
Daphne’s, which is considered a fast-casual restaurant, was established in 1991 and now has locations throughout California, Arizona, Colorado, and Washington, several of which are located in Los Angeles County.
Over the past year or two, Fili has been forced to lay off some employees and shut down locations that were underperforming, but
maintains that the bankruptcy will not affect the daily operations at those locations that are still open.
Interested in Learning More About Chapter 11?
If your business is struggling in this tough economy, you may benefit from the reorganization and restructuring offered under Chapter 11. An experienced Los Angeles bankruptcy attorney at the Law Office of Teresa Beyers is available to discuss your options and explain the
bankruptcy process in detail during a consultation. To learn more about Chapter 11 bankruptcy,
contact the office today at