Roscoe's Chicken N' Waffles Files for Chapter 11 Bankruptcy
It's mostly due to one giant discrimination lawsuit
Looks like it could be trouble for iconic Southern California brand Roscoe’s Chicken ’N Waffles. According to a CBS Los Angeles report last night, the company has officially filed for Chapter 11 bankruptcy, a move aimed at consolidating its debts to hopefully stave off a full-on shutter down the line.
Chapter 11 bankruptcy is most often associated with large companies that have become saddled with an outsized amount of debt with relation to their profits, and that certainly seems to be the case here. Roscoe’s has more than half a dozen locations across the region, but owes money to vendors and other companies that it’s become unable to pay while still operating normally.
The biggest name on the list of pursuers? One Daniel Beasley, who successfully sued Roscoe’s last fall for discrimination, winning over $1 million in his claim that an all-Latino management treated him unfairly in order to favor other Latino workers. The family behind Roscoe’s declined to comment at that time on the case, and hasn’t so far said anything regarding the Chapter 11 court filing, either. For now, it’s business as usual at your local Roscoe’s Chicken ’N Waffles, but in the future, if this bankruptcy stuff doesn’t get resolved amicably, that could very well change.
(LA.Eater.com)
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