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Marmalade Cafe, SoCal brunch chain, files for chapter 11 bankruptcy
Fox News • • business
Key Points:
- Marmalade Cafe, a 36-year-old Southern California brunch chain, filed for Chapter 11 bankruptcy on September 2 due to rent disputes and mounting supplier debts exceeding $1 million.
- The company, which once operated eight locations, now has only four remaining open after closing others due to financial losses linked to construction disruptions, the Palisades Fire, and pandemic-related declines.
- Despite listing $12.7 million in assets, Marmalade Cafe reported a net loss of over $680,000 and downsized from more than 200 employees to about 50 this year.
- Industry experts highlight that rising costs in rent, wages, insurance, and utilities are forcing even long-established restaurants like Marmalade Cafe to close or restructure, signaling a broader restaurant industry reset.
- Marmalade Cafe's remaining locations in El Segundo, Malibu, Sherman Oaks, and Westlake Village remain open and are reported to be financially healthy.
