Marmalade Cafe, a Southern California diner chain popular with celebrities, has filed for Chapter 11 bankruptcy protection. The Encino-based company filed its petition on September 2, citing mounting supplier debts, rent disputes, and financial losses that led to the closure of four of its eight original locations.
The chain, which opened its first restaurant in Santa Monica in 1990, has seen its footprint dramatically shrink. The Calabasas restaurant, a frequent haunt for the Kardashian family, closed on August 1 after nearly three decades in operation. This followed the closure of its Santa Monica location just a month prior. Other recent closures include the original Montana Avenue restaurant in May 2024 and the Original Farmers Market location in Los Angeles in May 2026.
The bankruptcy filing lists assets and liabilities between $1 million and $10 million. Among the largest unsecured creditors are Gilmore Farmers Market, owed more than $481,000, and US Foods, owed more than $394,000. The company owes the California Department of Tax and Fee Administration over $349,000.
In its filing, Marmalade Cafe stated it had been experiencing 'unsustainable financial losses and a lack of rent relief' at some of its locations. The restaurant's financial difficulties have also impacted its workforce, with employment dropping from over 200 to approximately 50 people.
The chain's remaining four locations are in Malibu, El Segundo, Sherman Oaks, and Westlake Village. Chapter 11 bankruptcy allows businesses to continue operating while they reorganize their finances and debts, meaning these locations may remain open.
Marmalade Cafe's struggles mirror broader challenges in the restaurant industry, which has seen increased labor, food, and occupancy costs, alongside more price-conscious consumers. Other restaurant groups, including Fireman Hospitality and Salad and Go, have also filed for bankruptcy or closed locations recently.
Online reactions to the news have been mixed, with some expressing nostalgia and others criticizing increased prices and perceived declines in quality. The future of the remaining Marmalade Cafe restaurants remains uncertain as the company navigates its bankruptcy proceedings.