The operator of Black-eyed Pea restaurants in Texas has filed for Chapter 11 bankruptcy protection, moving the once-pioneering casual chain closer to a sunset in its home state.
The filing did not involve the five Black-eyed Peas in Colorado, which are operated by a separate, independent company, according to press reports.
The Texas branch, operated by Restaurant Acquisitions I, had shuttered 15 of its 30 restaurants prior to the filing, the local reports indicate. Restaurant Business was unable to retrieve the court documents prior to this posting.
According to media that reviewed the filing, Restaurant Acquisitions I had retained investment bankers to secure capital for the chain, but they were unable to arrange a cash infusion.
The operator said cash flow had been throttled since late 2013 by eroding sales and spiking costs.
Black-eyed Pea was founded by Dallas concept creator Gene Street in 1975, when casual dining was in its infancy. Street sold the business some time ago to focus on other of his concepts, and the brand was bought and sold several times afterward.
Restaurant Acquisitions I said it intends to reorganize the business. It has asked the court to earmark funding to continue paying employees and to honor gift cards.
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