Bar Louie’s Rockville and Wheaton locations are among the chain’s 38 locations to close over the weekend.
A statement released by Bar Louie on Monday confirmed that the organization has filed for Chapter 11 bankruptcy protection and said it was closing “underperforming locations to strengthen its operational and financial position.”
Tom Fricke, CEO of Bar Louie, said in a statement, “Bar Louie is a profitable business focused on long-term growth with new investors. The sale through Chapter 11 will help us to focus on our profitable core locations and expand in areas that have a proven track record of success.”
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Bar Louie, is a gastrobar chain that was founded in 1990 and operates in several suburban and urban markets. Now, only 90 Bar Louie gastrobars will remain open, two of which operate in Maryland in Baltimore and Hunt Valley.
Bar Louie’s statement says, “The Company expects to emerge from the Chapter 11 process within 90 days.” The company says that it will continue funding post-bankruptcy operating expenses—including employees and suppliers—since it has received commitments from lenders for debtor-in-possession (DIP) financing.
The Bar Louie in Rockville was located in Rockville Town Square. The location in Wheaton was located on Veirs Mill Road.
The Facebook pages for the Wheaton and Rockville locations posted this message about the closings on Sunday afternoon:
To our loyal guests, our last day of business was January 25th, 2020. Please visit us at our Hunt Valley location or go to www.barlouie.com/locations to find the Bar Louie nearest to you.
Thanks for the memories!
-Louie
The Baltimore Sun obtained the bankruptcy filing. The Sun reports, “Bar Louie lists more than $100 million in outstanding debts, according to the filing. As part of the bankruptcy process, secured lenders have agreed to bid on the assets to guarantee a sale if no other buyer steps up with a higher offer. The minimum bid will be $82.5 million plus assumed liabilities, according to the filing.”
