The luxury dining group is the owner of the popular restaurant’s chain fig and olive.
It is a high-end restaurant chain with 9 locations in multiple cities including New York, Los Angeles, etc. Now amid the Coronavirus crisis, the company has filed for bankruptcy. Another reason for filing for bankruptcy is multiple lawsuits.
According to the court papers, the company said that The Chapter 11 cases “were precipitated by certain accumulated losses and a series of employment-related litigations, with their situation exacerbated by the Covid-19 crisis, forcing each of the restaurants to temporarily close,”
The owners of the company said that after discussions with management, they will decide which of the locations still have the capacity to turn profitable and will try to revive and reorganize these locations. But for these activities, the company will require funds.
They said that as long as Fonkenell provides themselves with funds, they will be able to revive the business. Fonkenell said that they will loan enough funds to the business so that it reorganizes itself. As of now, the company has laid off more than 700 employees and only 34 are working.
Coronavirus has hit the hospitality sector hard and that to resultants are one of the biggest victims of the Pandemic. Many restaurants have closed down since the pandemic began and many are on the verge of closing down. For more such latest news stay tuned with us.