David K. C. Corporation has initiated Chapter 11 bankruptcy. The company is currently doing business as Darren’s Cafe, which is a casual restaurant in San Francisco, California.
Note: A Chapter 11 bankruptcy filing allows a business to reorganize its debts while continuing operations under court supervision. Under Chapter 11, a debtor typically proposes a plan to repay creditors over time, subject to court approval. A Chapter 11 filing does not necessarily mean a business is closing or going out of business. For additional information, readers are encouraged to contact the business directly.
Overview of the Filing
Case records, as available on the PACER show that David K. C. Corporation submitted a Chapter 11 petition on August 10, 2026. The records add that the company is currently operating under the business name Darren’s Cafe, which is known for its breakfast, brunch, and lunch offerings.
David Kim, the company’s president and CEO, signed the petition. Attorney Nancy Weng of Farsad Law Office, P.C. is representing the company in the bankruptcy case.
The filing comes as restaurants across the Bay Area have faced rising operating costs and changing consumer demand. San Francisco Chronicle reported a wave of restaurant and bar closures in 2025. Restaurant owners cited declining sales, changing consumer habits, broader economic uncertainty, and higher labor costs as the prime reasons.
Case Related Details
Court records describe the company as a small business debtor, which has decided to move ahead through Subchapter V. This provision is designed for completing court requirements in a faster and more affordable way.
David K. C. Corporation currently faces a gap between its assets and liabilities. According to the records, while the liabilities are estimated to be approximately $746,254, its assets are around $71,912.
The company’s statement of financial affairs reports declining gross revenue over the past two years. The filing reports gross revenue of $939,559 in 2024 and $797,276 in 2025. Through the August 10 filing date, the company reported gross revenue of $166,392 in 2026.
The filing also lists creditors holding the company’s largest unsecured claims.
Filing records also name JPMorgan Chase Bank, Square Financial Services, and Wells Fargo Bank among its creditors. Other listed obligations include delinquent sales taxes owed to the California Department of Tax and Fee Administration, telecommunications-related charges owed to AT&T Wireline, and income taxes owed to the Internal Revenue Service.
A summarized version of the Chapter 11 petition is shared here:
- Filing Date: August 10, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Northern District of California
- Type of Filing: Active, Voluntary Petition
- Chapter: 11, Subchapter V
- Case Number: 26-30698
- Estimated Assets: Between $50,001 and $100,000
- Estimated Liabilities: Between $500,001 and $1 million
- Estimated Creditors: 1-49
Previous Bankruptcy filing from Restaurant Operators
This year has marked an upward trend in bankruptcy filings by nationwide restaurant businesses amid challenging financial conditions.
On January 18, 2026, a Tucson-based neighborhood café entered Chapter 11 proceedings. The petition showed that Cafe Passe, LLC intended to readjust its debts using a Subchapter V filing. The café owned by local Jenny Rice is known for its all-day meal offerings, outdoor patio, and brunch arrangements.
A Marietta Square grocery café filed for bankruptcy protection on May 7, 2026 within a year of its opening. Case records showed that The Plates Restaurant, LLC faced a gap between its assets and liabilities. The company currently provides its services under the business name Asher & Rose Grocers.
Please & Thank You, LLC submitted its Chapter 11 petition on June 2, 2026. Court filings showed that the company’s liabilities outweighed its assets, prompting the decision to restructure through bankruptcy. The regional bakery chain currently serves across Indianapolis and Louisville.
David K. C. Corporation’s filing comes as other independent cafés, restaurants, and food-service operators across the U.S. have also turned to Chapter 11 protection. Upcoming proceedings are expected to shape its future financial footing.
