Raleigh, N.C. — Following the closure of two Triangle restaurants, Winston Salem-based K&W Cafeterias has filed for bankruptcy.
The popular restaurant franchise filed for Chapter 11 bankruptcy last week in the U.S. Bankruptcy Court for the Middle District of North Carolina.
Filing for Chapter 11 bankruptcy allows the court to reorganize the debt and negotiate terms instead of having to sell off all assets.
In the filing, the company says it has just over $30 million in assets and $22 million in liabilities. Among its debts is a $6.7 million PPP loan by Truist Bank in Charlotte.
The Cameron Village and Chapel Hill K&W Cafeterias locations recently closed. K&W Cafeterias President Dax Allred told WRAL at the time that the closures were due to the impact the coronavirus pandemic had on the business.