Bankruptcy Guide for Restaurants

4 Min Read By Adam H. Rosenblum, Esq.

In February 2020, the National Restaurant Association announced projections that restaurant industry sales would reach $899 billion this year, experiencing four-percent growth “mirroring general economic conditions.”That seems like a lifetime ago. The COVID-19 pandemic has caused restaurant sales to plummet. In many states, revenue has declined by as much as 80% over the same time period in 2019. New York City and other metro areas have been hit particularly hard. While business has picked up in those states that have begun easing restrictions, many restaurateurs have been forced to close up shop. Some have (or are considering) filing for bankruptcy. 

Alternatives to BankruptcyStruggling to pay one’s debt does not automatically mean bankruptcy is inevitable. Restaurant owners have a few options that can be considered first. 

The CARES Act offers several options that many restaurants have already chosen to take advantage of. Those who haven’t done so yet should consider how…