The U.S. restaurant industry is navigating ongoing challenges from rising costs and lingering effects of the pandemic. Now, an Iowa favorite has filed for bankruptcy due to the imbalance in its assets and liabilities. The establishment seeks Chapter 11 bankruptcy protection to restructure its debts.
The Grange Public House & Brewery LLC Filed for Bankruptcy
According to PacerMonitor, The Grange Public House & Brewery LLC filed for bankruptcy on September 22. The case filing shows an imbalance in assets and liabilities that led to the bankruptcy. Now, it seeks to restructure its finances and debts under court supervision, including continuing operations.
The Grange Public House & Brewery is a known for its warm atmosphere and locally sourced dishes. Despite its popularity, the restaurant’s finances have become unsustainable.
The company has filed for Chapter 11 Subchapter V bankruptcy, which is specifically for small businesses. The company now has to submit a reorganization plan by December 22, 2025. The court will review the plan before approving it to guide the company through its Chapter 11 reorganization.
Significant Imbalance in Assets and Liabilities
According to the case filing, it is clear that the company has a significant imbalance in its assets and liabilities. The assets reported in the filing are between $100,001 and $500,000. However, the liabilities are between $1,000,001 and $10 million with 1-49 creditors.
The filings show the company cannot meet its obligations to creditors while covering day-to-day operations. The Chapter 11 filing gives the company time to restructure its finances and work toward repaying creditors while staying operational.
Chapter 11 allows The Grange to keep its doors open while reorganizing its finances.
