Nashville’s restaurant industry continues to face rising labor and operational costs, challenging many local establishments. While some restaurants are working to stay afloat post-pandemic, others are still struggling to repay accumulated debts. Among the latter, Back 40 LLC in Nashville has filed for Chapter 7 bankruptcy.
Highlights
- Back 40 LLC filed for Chapter 7 bankruptcy on July 16, 2025.
- The establishment seeks liquidation bankruptcy to clear out most debts.
- The proceedings will continue with a creditor meeting on August 11, 2025.
Nashville-Based Restaurant Files for Chapter 7 Bankruptcy
Back 40, a well-known neighborhood eatery in Nashville, has long attracted a loyal local following. Despite earning praise for its service and menu, the restaurant reportedly struggled to maintain sustainable profit margins. It has resulted in the restaurant filing for Chapter 7 bankruptcy on July 16, 2025.
Chapter 7 bankruptcy refers to a legal process through which businesses or individuals can eliminate most of their debts. It allows them a fresh financial start and is also known as liquidation bankruptcy.
The court appoints a trustee who may sell some property or items that aren’t really needed by the debtor. Proceeds from the liquidation are used to pay back outstanding debts. Essential personal assets are typically exempt from liquidation. The trustee focuses on clearing most unsecured debts, like credit cards or hospital bills.
Bankruptcy Proceedings in Tennessee Middle Bankruptcy Court
According to PacerMonitor, Back 40 LLC filed for bankruptcy on July 16 through their representative, Joseph P Rusnak. Creditors were notified of a meeting scheduled to discuss the case. The meeting with creditors will be on August 11, 2025.
Judge Randal S. Mashburn will be overseeing the proceedings of the case. He will then decide whether the debtor qualifies for Chapter 7 bankruptcy. The interim trustee appointed for this bankruptcy case is Erica R. Johnson.
Once the proceedings begin, the court and trustee will look into the debtor’s assets. Upon confirmation of their ineligibility to repay the debts, they will move on to the liquidation of their assets. If approved, the filing would allow Back 40 LLC to discharge most debts and reset financially.
