Garces Group, the restaurant company headed by Food Network chef Jose Garces, filed for bankruptcy protection this week after selling its assets to Ballard Brands, a Louisiana-based hospitality company.
The Philadelphia-based Garces Group currently has 13 restaurants in its portfolio. Garces has become embroiled in lawsuits stemming from the company's financial troubles.
Just this week, investors in three of his Philadelphia restaurants filed a lawsuit against Garces, alleging that he mismanaged operations and ignored requests to step aside.
The $5 million deal with Ballard Brands “doesn’t currently involve” closing any existing units, Garces told Philadelphia Magazine, adding that he hopes it promises expansion plans for Ballard’s home turf of the Southeast. Ballard is known for concepts such as PJ’s Coffee, Boardhouse Serious Sandwiches and The Original City Diner.
Most of the 750 Garces Group employees will be kept on, Garces said in a statement.
“The last couple of years have been challenging, there is no doubt," Garces said. "This step allows us to build on our solid reputation and performance to bring new concepts to life with a fresh start."
Financial troubles for the group began in 2014 with the shuttering of Revel Casino in Atlantic City, N.J., where Garces owned and operated four restaurants, according to a report in the Philadelphia Business Journal. In March, the Garces Group closed Amada New York in New York City.
Garces will continue to be the “creative vision behind the restaurants,” according to restaurant group officials cited in the Philadelphia Business Journal report.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.