Marmalade Cafe, a Southern California restaurant fixture founded in 1990, has filed for Chapter 11 bankruptcy protection, citing rent disputes and mounting supplier debts. The 36-year-old chain owes more than $1 million to various creditors, including Gilmore Farmers Market, US Foods, and Sysco Ventura Inc.
The Encino-based company reported total assets of $12.7 million but also a net loss of $680,314 in its bankruptcy filing. Marmalade Cafe, which initially operated four locations across Southern California at the time of the filing, had closed four others in recent years.
Reasons for closure at specific locations included construction disruptions impacting sales, such as at the Calabasas restaurant, which was a reported favorite of the Kardashian family. The company stated that ongoing construction at a shopping center led to a "devastating decline in business" and that landlords declined to offer rent relief, making the financial losses unsustainable.
The original Santa Monica location also shuttered due to losses tied to a wildfire, and the Original Farmers Market outpost closed after failing to recover pre-pandemic business levels. The company has downsized its workforce from over 200 employees to approximately 50.
Marmalade Cafe's four remaining open locations are in El Segundo, Malibu, Sherman Oaks, and Westlake Village. A representative indicated that these locations are financially healthy.
The restaurant's struggles reflect broader challenges in the dining industry. Chef Andrew Gruel, founder of American Gravy, noted that long-standing restaurants face difficulties from simultaneous increases in rent, wages, insurance, and utilities, especially in markets like California. He suggested that survival in the current climate depends on a business's ability to adapt its model, including menus, staffing, and operating hours.
Marmalade Cafe joins a growing number of restaurant chains facing financial difficulties, including recent bankruptcies or closures of entities like Fireman Hospitality, Salad and Go, and FAT Brands, as well as individual locations of chains such as Red Lobster, Carl's Jr., and On the Border.