The owner of high-end steak house, 801 Chophouse, has filed for bankruptcy protection, highlighting growing pressure on restaurants as food costs rise.
801 Restaurant Group LLC filed for bankruptcy in U.S. Bankruptcy Court in Kansas City, the Des Moines Register reports.
Court filings show the company lists between $10 million and $50 million in assets and liabilities.
The company did not give any specific reason for the filing but plans to restructure its debts while continuing to operate.
The move comes as beef prices rise across the United States. Data cited by WIBC radio showed that steak prices rose 16 percent to $12.73 a pound, while ground beef rose to $6.70 a pound.
The increase is partly due to declining cattle herds, which have fallen to their lowest level in 75 years, according to U.S. Department of Agriculture data reported by the Texas Farm Bureau.
801 Chophouse operates eight locations in major US cities. An affiliated restaurant in Minneapolis has already closed as the company faces financial challenges.
At The News Digital, our editors combine an understanding of entertainment with global reporting expertise. Expect authoritative coverage of royals, Hollywood and trending topics, as well as clear, credible updates on science, politics, sports and business. We keep it accurate, current and easy to understand, so you can stay ahead.
