February 14, 2025
SC-Racial Fatz Cafe Suffers Due to Tough Financial Times

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Fatz Cafe is ready, cooked.

With less than 10 grand in the bank, the South Carolina-born and bred casual dining chain closed its remaining 18 restaurants about two weeks ago, including eight in the Palmetto State. Its owner, less than a year old, filed for bankruptcy about 48 hours later.

According to a sign placed at a closed location in East Tennessee, “We thank you for your support during our years in business.”

Texas-based owner ACM Fatz VII LLC will likely liquidate properties to pay off creditors rather than reduce debt and restructure its finances.

The company described the decision to discontinue the series as “difficult”.

“While this is not the outcome anyone expected or wanted, we are comforted to know that ACM Fatz Cafe has provided a place for family and friends to gather around the dinner table and create memories to last a lifetime. accomplished its intended purpose by doing so,” it said in a written statement on Thursday.

Fatz Cafe in Aiken closed in 2020 after operating for 13 years. file

The bankruptcy petition filed by the company in Dallas on August 25 painted a grim financial picture, with sales falling 15 percent from 2021 to $32 million last year.

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Fatz also listed debts totaling $5.14 million, including back rent and taxes owed to various landlords and government agencies. The company’s assets were valued at $7.3 million, consisting mostly of equipment and supplies.

There was only $9,912.50 in the operating account.

Fatz Cafe served its first healthy-portion dishes nearly 35 years ago in a converted peach shed in Spartanburg County, adding calabash chicken to its Southern-style comfort-food menu.

The concept was the brainchild of the late upstate restaurateur Jimmy Rogers, whose Cafe Enterprises Inc. The holding company later added three more locations. By the late 1990s, the founders had moved on after selling their stake in the business to Quincy Steakhouse’s former CEO.

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While its sudden demise last month came as a surprise to outsiders, Taylors-based Fatz has struggled for more than a decade, including a bankruptcy filing more than six years ago.

Source: www.bing.com

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