Marmalade Cafe files Chapter 11 as Southern California locations shutter
Marmalade Cafe, a Southern California brunch chain, entered Chapter 11 bankruptcy on Sept. 2, citing assets and liabilities between $1 million and $10 million.
Marmalade Cafe, known for upscale casual brunch, filed for Chapter 11 protection on Sept. 2, reporting assets and liabilities in the $1 million-$10 million range and debts over $1 million to suppliers and the California tax agency. The chain currently runs four locations in El Segundo, Malibu, Sherman Oaks and Westlake Village, while recent closures include its Calabasas store, which suffered a $50,000 monthly sales drop due to construction that crippled its parking lot.
Director of Operations Lindsay Arnold highlighted rent of just under $80,000 and the loss of parking as decisive pressures. Earlier closures this year affected the original Santa Monica shop after a fire in the Palisades and the Original Farmers Market outlet. Despite the filing, Arnold expressed confidence that the remaining sites remain financially healthy and hopes they stay open.
Why it matters
The bankruptcy highlights the strain on mid-size restaurant chains facing rising rents and construction disruptions.
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