Marmalade Cafe, a Southern California-based diner chain, has filed for Chapter 11 bankruptcy protection, citing “rent disputes and mounting supplier debts.” The filing comes just over a month after the closure of its Calabasas location and follows a period of significant contraction for the company.
Marmalade Cafe, which began in 1990 on Montana Avenue in Santa Monica, had grown to operate eight restaurants across Southern California. However, four locations have closed in recent years, including two in 2026 alone. The Calabasas restaurant closed on August 1, and the Santa Monica Boulevard location shuttered a month prior, attributed by the company to “unsustainable financial losses and a lack of rent relief.” Previously, the Original Farmer’s Market location closed in May 2026, and the original Montana Avenue location closed in May 2024.
The company's workforce has also diminished, with employment figures falling from over 200 people to approximately 50 employees by mid-2026, following downsizing that began in 2024. Four Marmalade Cafe locations remain open in Malibu, El Segundo, Sherman Oaks, and Westlake Village.
According to the bankruptcy filing, Marmalade Cafe's total assets are listed at $12.7 million, with a net income of -$680,314. The company reported between 50 and 99 creditors, with unsecured debts exceeding $2.4 million. Among its largest listed unsecured debts are Gilmore Farmers Market ($481,150), US Foods Inc. ($394,711), California Department of Tax and Fee Administration ($349,014), Sunrise Produce ($293,239), Sysco Ventura Inc. ($239,603), Global Merchant ($141,952), and K&M Food Service ($116,067).
Marmalade Cafe is not the only restaurant chain to seek Chapter 11 protection recently. In the past month, New York’s Fireman Hospitality filed for bankruptcy due to cash flow issues stemming from the COVID-19 lockdowns. The Red Lobster in Palm Desert also closed last month, and Salad and Go filed for bankruptcy and closed all its locations in August. Earlier in 2026, Carl’s Jr. closed 49 Southern California locations in May, and On the Border closed 60 locations nationwide in June. Mountain Mike’s Pizza and 801 Chophouse also filed for Chapter 11 protection this year.
It remains unclear if the current Chapter 11 proceedings will lead to the closure of the four remaining Marmalade Cafe locations.