Longtime Southern California Restaurant Chain Files for Chapter 11 Bankruptcy

A longtime Southern California restaurant chain has filed for Chapter 11 bankruptcy protection amid the closure of several locations. Marmalade LLC, the company behind Marmalade Cafe, filed for a voluntary Chapter 11 petition on September 2, according to court documents. Chapter 11 allows a business to reorganize its finances and pay creditors over time while still continuing to operate. Under Chapter 11, the debtor typically continues to own the business, may run the business, and, with the court's approval, may borrow additional funds. Marmalade LLC also indicated that it chooses to proceed under Subchapter V of Chapter 11. The subchapter is intended for small businesses and offers a quicker and more efficient restructuring plan. Unlike traditional Chapter 11 proceedings, Subchapter V generally provides more flexibility for business owners to retain their equity interests while restructuring their debts, without being subject to the absolute priority rule that applies in traditional Chapter 11 petitions. Type of Filing: Voluntary bankruptcy petition Chapter: 11 Industry: Not specified Case Number: 1:26-bk-11931 Court: Central District of California Estimated Liabilities: Between $1 and $10 million Estimated Assets: Between $1 and $10 million Estimated Creditors: Between 50 and 99 Some of the largest unsecured creditors of the business include Gilmore Farmers Market (owed $481,150 in disputed rent), US Foods, Inc. (owed more than $394,711 in suppliers or vendors), and the California Department of Tax and Fee Administration (owed more than $349,000). Marmalade LLC listed its address as 16530 Ventura Boulevard, Suite 611 in Los Angeles County's Encino, according to PACER. The court filings show the business will have funds available for distribution to unsecured creditors after administrative expenses are paid. The company said it has not filed for bankruptcy in the past eight years and there were no bankruptcy cases pending or had been filed by an affiliated company. The petition was signed by Marmalade LLC CEO Juan Salcedo, who is being represented by attorney Leslie Cohen of Leslie Cohen Law PC. About Marmalade Cafe Marmalade Cafe originally opened in Santa Monica in 1990 as a restaurant with limited seating featuring a full bakery and serving entrees and salads, according to its website. The cafe's success led founders Selwyn Yosslowitz, Robert Burns Jr., and Bonnie Burns to launch the first full-service Marmalade Cafe in Malibu in less than three years. The cafe soon expanded to several other Southern California locations. Despite its success, Marmalade Cafe has been shuttering some of its locations. In July, the cafe announced in a social media post that it was closing its Calabasas location after 28 years. Citing financial losses, the cafe said that the ongoing construction in the shopping center where it was located had resulted in a sharp decline in business, and the landlord had declined to extend rent relief. View this post on Instagram A post shared by Marmalade Cafe (@marmaladecafela) The business's Santa Monica location closed in July, where it had served diners for more than 30 years, the Santa Monica Sun reported. The closure came after 27 months since the cafe moved to a new location in the city. The restaurant specializes in California cuisine using fresh produce and serves breakfast, lunch, and dinner.