Are 801 Chophouse restaurants closing? What to know as steakhouse owner files for Chapter 11 bankruptcy

It’s been a rough several years for restaurant chains.

[Photos: Ryan Renner/Flickr, CC BY 2.0; Adobe Stock]

It’s been a rough several years for restaurant chains. Many have been facing headwinds on two fronts: consumers who are pulling back on discretionary spending as inflationary pressures bite, and rising operating costs. These pressures have resulted in numerous chains filing for bankruptcy in recent years.

Now, another chain’s owner has joined those ranks. 801 Restaurant Group, the parent company of the 801 Chophouse chain of steakhouses, has filed for bankruptcy. Here’s what you need to know.

Earlier this month, 801 Restaurant Group, owner of several companies that own 801 Chophouse, 801 Fish, and 801 Local, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Kansas.

The group’s steakhouses, the first of which was opened in 1993 in Des Moines, Iowa, have been a popular destination for Midwestern patrons for over 30 years. In 2013, 801 Restaurant Group expanded beyond its steakhouse roots to open 801 Fish, an upscale seafood restaurant.

But in recent years, the group has, like many restaurant chain owners, fallen on harder times. According to court documents filed on April 10, 801 Restaurant Group has about $18.7 million in liabilities on its books and $15 million in assets.

In an emailed statement, 801 Restaurant Group told Fast Company that while 801 Restaurant Group LLC is in bankruptcy, its individual companies that own and operate its restaurants are not.

801 Restaurant Group said the reason it is filing for bankruptcy is due to financial issues that “arose from guaranties given by 801 Restaurant Group, LLC for other companies that it owns.” The primary issue concerns the recent closures of 801 Fish in Denver and its latest concept restaurant, 801 On Nicollet, in Minneapolis.

Meet Kyoto: the typeface that bleeds (on purpose)

© Fast Company