Celebrity chef Mike Isabella, who got his start on Top Chef, has filed for Chapter 7 bankruptcy on behalf of his parent company, Mike Isabella Concepts. By filing for Chapter 7 bankruptcy, Isabella is closing the doors to his six remaining restaurants and liquidating its assets to pay off debts.
Isabella had previously closed several restaurants, including Isabella Eatery, which closed in August 2018. In September 2018, Isabella filed for Chapter 11 bankruptcy to reorganize his company. However, despite Isabella's efforts to move forward, he was unable to save his company.
Isabella believes that his trouble started when he, along with his partners, was accused of sexual harassment by a former manager. He says that, despite his apology and efforts to remedy the situation, many media sources continued to give Isabella negative publicity. This negative publicity, according to Isabella, is the reason that his company, once worth approximately $40 million, will go out of business by the end of the year.
Financial reports of the closing restaurants show that the situation has become dire, with Isabella's restaurants losing millions in gross revenue.
When debts become insurmountable, Chapter 7 bankruptcy may be the best option for you. Chapter 7 bankruptcy is the most common form of bankruptcy and is available to both individuals and businesses that meet eligibility requirements. With a Chapter 7 bankruptcy, many of your debts will be cancelled and you may have to liquidate property to repay creditors. A bankruptcy attorney can walk you through the process and help you start over with a clean slate.