A Nationwide Gastrobar Chain Has Filed For Bankruptcy And Is Already Closing Locations

When it comes to nationwide restaurant chains, filing for bankruptcy doesn't mean the end of the road — but it sure isn't a good sign. Following in the unfortunate foodsteps of struggling eateries like the Ponderosa Steakhouse chain, as well as the popular TGI Fridays, and seafood behemoth Red Lobster, popular gastrobar chain Bar Louie began shuttering multiple locations while filing for Chapter 11 bankruptcy on March 26 2025. At its peak, Bar Louie operated 134 eateries across the country, but at the time of writing is now down to just under 50.

Known for its casual atmosphere and chef-inspired menu with some elevated versions of traditional pub fare, the chain seems to have been in trouble for some time now. Bar Louie started closing down restaurants ahead of the bankruptcy filing, leaving employees in the lurch as they were laid off without much notice — some even showed up for their shifts, only to discover the restaurant locked and empty. At two Detroit locations, an internal memo cited "poor performance" as the reason for closing, indicating that the chain may be shuttering lower-sales restaurants first as it navigates the bankruptcy process (via Detroit Free Press).

The news of Bar Louie's financial trouble may be concerning for fans, but this isn't actually the first time the eatery has filed for bankruptcy. While the chain's restaurant headquarters reside in Texas, Bar Louie actually started its life in Chicago as a single neighborhood watering hole in 1991 before introducing new ownership and embarking on a major expansion throughout the 2000s and 2010s. The popular eatery and self-proclaimed "Original Gastrobar", first sought financial protections in January 2020, as it was awash in debt and had no money on hand to fix emerging issues with less profitable locations.

After closing 38 restaurants, Bar Louie emerged from bankruptcy in June of that year, with a game plan that included a reworked menu, new marketing focal points, and even redesigned restaurants. But that seems to be no match for the continued economic impact of the COVID-19 pandemic, lifting the costs of both food and workers, as well as consumer preferences, which are shifting toward fast-casual over casual. Some research has shown that over half of Americans are cutting back on how much they eat out (via Simplot Foods). Will Bar Louie again be able to regroup and emerge from bankruptcy once again, new and improved? Only time will tell.