Kimchi Korean Restaurant Inc., known for its traditional Korean flavors and homestyle hospitality, has voluntarily filed for Chapter 11 bankruptcy. The filing was made in the New Jersey Bankruptcy Court, and the restaurant plans to stay open while restructuring its debts.
Kimchi Korean Restaurant Inc. Filed for Chapter 11 Bankruptcy
Kimchi Korean Restaurant Inc. operates a single Korean BBQ restaurant under the name Yook92 at 425 Grand Avenue, Palisades Park, NJ 07650. The company filed for bankruptcy on October 28, 2025, under the case number 2:25-bk-21432.
According to PacerMonitor, attorney Stephen B. McNally of McNally Law, LLC is representing the company in court. The company reported between one and 49 creditors, with estimated assets of $0 to $50,000—well below its listed liabilities of $1 million to $10 million.
On October 29, the U.S. Bankruptcy Court for the District of New Jersey issued an Order to Show Cause in the Chapter 11 case of Kimchi Korean Restaurant Inc., operator of Yook92 in Palisades Park. The order directs the company to explain why its case should not be dismissed after several required documents were not submitted with its initial filing. Missing materials include financial schedules, statements of assets and liabilities, a list of equity holders, and other disclosures needed to complete the bankruptcy record.
The court has scheduled a hearing for November 25, 2025, in Newark to determine whether the business may continue under Chapter 11 protection. The company must file the missing documents or provide a valid explanation to keep the case active.
While such procedural orders are common early in bankruptcy proceedings, failure to comply could result in dismissal, ending the restaurant’s protection as it seeks to restructure under Subchapter V.
Although Kimchi Korean Restaurant Inc. is undergoing restructuring under Chapter 11, the move could mean that the restaurant stands a chance of financial recovery and survival in the local food industry. The progress of the case will further define the strategy on how the business will sail to its recovery.
