The 19-unit Taylor Gourmet hoagie chain filed Chapter 7 bankruptcy proceedings on Thursday after closing all of its locations in the Washington, D.C. area and Chicago earlier in the week.
According to court documents, the liquidation leaves 50 to 99 creditors, but no funds would be available to unsecured creditors after administration expenses were paid. The company estimated assets between $1 million and $10 million and liabilities between $10 million and $50 million.
The move comes after private-equity firm KarpReilly LLC reportedly pulled its $5.6 million investment after three years. Taylor Gourmet in 2015 had 10 units when it won the backing of KarpReilly, which has a large restaurant portfolio, including Burger Lounge, California Fish Grill, Café Zupas, Eureka and Superba Food + Bread.
KarpReilly also recently agreed to sell another early-growth concept it had invested in: Patxi’s Pizza in San Francisco is in the process of being acquired by Elite Restaurant Group, owner of the Slater’s 50/50 and Daphne’s chains.
Neither KarpReilly nor Casey Patten, Taylor Gourmet’s co-CEO, responded to requests for comment.
In an earlier report in the Washington Business Journal, Patten said he was considering three restaurant closures, saying the chain had grown too rapidly.
Patten also cited increased fast-casual competition and higher real estate prices. He said some locations were larger than they needed to be.
Other sources, however, reportedly blamed the fallout after Patten met with President Donald Trump at a small business roundtable at the White House in January 2017, according to the Washingtonian.
Patten, who described himself as apolitical, said the chain suffered a backlash and calls for a boycott. One source said sales declined 40 percent the day after the roundtable.
A spokesman, however, told the Washingtonian that the chain rebounded after the controversy.
Contact Lisa Jennings at [email protected]
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