The Etta Collective LLC filed for Chapter 11 bankruptcy protection earlier this month, following the abrupt closure of a Chicago location of its signature Etta concept.
The Feb. 1 bankruptcy filing included affiliated businesses Aya Bakery in Chicago, as well as Etta units in Scottsdale, Ariz., and Chicago’s River North and Bucktown neighborhoods.
An Etta in Los Angeles closed last year, as did the group’s more-casual concept Sophie’s (previously known as Café Sophie) in Chicago.
The Chicago Sun-Times reported in January that Etta Collective had defaulted on a $2.5 million loan. The Etta River North location closed on Jan. 22, which was reportedly a surprise to workers who were given only a few hours notice. Etta locations in Bucktown and Scottsdale remain open, however.
Etta Collective was created by David Pisor following the restaurateur’s much-documented breakup with a former partner in the Maple & Ash steakhouse, which had locations in Chicago and Scottsdale, and was once one of the highest volume restaurants in America.
Pisor and former partner James Lasky reached a settlement in 2023 that split up concepts under their former company What If Syndicate. Lasky took Maple & Ash, along with the Monarch and Kessaku brands. And Pisor took Etta, a concept that never opened called Celestina and Café Sophie.
In a statement about the bankruptcy, Pisor said, “We have made a proactive decision to commence this strategic reorganization process with the cooperation of our lender, who has agreed to work with us so that we can come out of this process even stronger than before.”
The restructuring could include a sale. Investor John Leahy, who is described as a “seasoned industry veteran with over 30 years experience in banking at CitiBank,” is a stalking horse bidder on the assets.
In the statement, Leahy said, “I’ve known David for more than two decades, and I have always been impressed with the brands that he has created. I look forward to putting the company back on good standing with our community and team members, while building an even stronger future for the brand.”
In an interview last year, Pisor outlined big plans for growth, including the development of a new concept called Marilyn’s, which was scheduled to open in Chicago this summer, along with a new Italian steakhouse in Beverly Hills, Calif., and an izakaya-style bar in Dallas. Pisor at that point was also planning to multiply the more-casual Sophie’s brand.
Pisor on Tuesday said those projects are on hold while the company works to rebuild its financial foundation. The bankruptcy is a subchapter V filing, which allows debtors to retain more control over assets and operations.
“If we can restructure correctly, we’ll be in a good place to rebuild,” he said, describing it as a fresh start.
Still, the future of existing and proposed brands is not clear, though Pisor said his goal is to not change any of them.
“Our aim is to best position the Etta brand for future success,” Pisor said in the statement. “By filing for protection under Chapter 11, we will be able to restructure our financial position while continuing our daily operations and keeping our locations open. As has already happened in our Scottsdale location, we predict that we will emerge stronger both operationally and financially.”
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