With so many restaurant chains closing locations nationwide and even filing for bankruptcy, these alarming trends are starting to feel like the new normal. But amid the turbulence, one familiar name is getting another shot at survival despite its ongoing financial struggles.
Founded in 1990 in downtown Chicago, Bar Louie gained popularity as an upscale neighborhood gastrobar known for its handcrafted cocktails and modern American food. For decades, it was a favorite gathering spot in cities across the country, but even its loyal following wasn’t enough to withstand today’s economic pressures.
Although some might have lost hope, restaurant operator Sun Holdings has given Bar Louie a lifeline by acquiring it out of bankruptcy for an undisclosed amount, nearly seven months after its Chapter 11 filing. The firm did not reveal the terms of the deal.
Sun Holdings has built a reputation rescuing and reviving struggling restaurant brands. The firm purchased Taco Bueno out of bankruptcy in 2019, acquired Freebirds World Burrito in 2024, and added Uncle Julio’s to its portfolio through a foreclosure auction in 2025.
Bar Louie’s Chapter 11 bankruptcy filings
Bar Louie filed Chapter 11 bankruptcy in the District of Delaware in March 2025, marking the second time it sought court protection in only five years. The chain reported assets between $1 million and $10 million, liabilities between $50 million and $100 million, and over $1.8 million in accumulated debt.
At the time of the filing, Bar Louie operated 48 restaurants in 19 states, including 31 company-owned and 17 franchise locations, employing approximately 1,400 workers. Following its restructuring, the chain now has 39 units nationwide.
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The first time Bar Louie filed for Chapter 11 bankruptcy was in 2020, with $110 million in debt, listing $85 million in assets and $140 million in liabilities. This followed the closure of 38 underperforming restaurants.
The chain was acquired out of its first bankruptcy by Antares Capital LP through an $82.5 million credit bid. This allowed the chain to continue operating its remaining 73 restaurants while pursuing a turnaround plan that included a brand revamp and menu refresh.
Despite those efforts, Bar Louie continued to downsize, closing 14 more underperforming locations in Tennessee, Colorado, New Jersey, Ohio, Illinois, Michigan, Missouri, and Texas, leading up to its second bankruptcy filing.
The restaurant industry faces ongoing struggles
Bar Louie is only one example of hundreds of well-known businesses struggling with the challenges that have been facing the restaurant industry over the last few years.
Many operators are still dealing with the lingering effects of the COVID-19 pandemic, such as higher food, labor, and rent costs. Weaker consumer spending and declining customer traffic have only intensified the pressure, leaving even long-established chains vulnerable.
Major brands like Red Lobster, TGI Fridays, and Buca di Beppo have all faced similar hardships, including declining sales, mass closures, and bankruptcy filings.
“Economic fragility is expected to continue to weigh heavily on consumer behavior, with uncertainty about the potential impact of tariffs on costs, weak job growth trends and the specter of stagflation further complicating operators’ efforts at forward planning,” noted Bank of America in its State of the Restaurant Industry 2025 report.
According to Oysterlink, only 34.6% of restaurants survive past the 10-year mark.
That being said, not many businesses get a second chance, but with Bar Louie’s new ownership and Sun Holdings’ extensive experience in reviving dying brands, this restaurant bar chain may defy the odds it has been up against once and for all.
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