20.05.2026 14:01
Shari's, one of the long-established family restaurant chains in the US, has filed for bankruptcy protection due to a financial crisis. The company, which once had 95 branches and 4,000 employees, closed 86 of its branches before the process. Court records indicated that the company's debt is between $10 million and $50 million. Experts say that rising labor and food costs after the pandemic have severely strained the restaurant industry.
Founded in 1978 and operating mainly in the northwestern United States, the family restaurant chain Shari's filed for Chapter 11 bankruptcy protection with the Delaware District Bankruptcy Court due to a financial crisis.
According to court records, the company's total debt is reported to be between $10 million and $50 million.
CLOSED 86 BRANCHES
The restaurant chain, which at one point had 95 branches and approximately 4,000 employees, was forced to downsize in recent years due to rising costs.
Before the bankruptcy process, the company closed 86 of its branches and recently ceased operations at all its restaurants in Oregon state.
Local court records stated that the company faced numerous legal proceedings due to unpaid rent debts, eviction cases, delayed supplier payments, and tax debts.
COSTS INCREASED BY 35 PERCENT
Financial reports on the US restaurant industry revealed that rising inflation in the post-pandemic period has placed significant pressure on businesses.
According to industry data, labor and raw material costs have increased by an average of 35 percent compared to 2019. Experts note that passing on cost increases to menu prices has led consumers to cut back on spending.
This situation is assessed to have particularly disrupted the cash flow of regional restaurant chains and increased the risk of bankruptcy.