Michigan-based Greek chain Olga's Kitchen has filed for chapter 11 bankruptcy Thursday in Detroit. Crain's reports the company owes millions to creditors as well as taxes to the state of Michigan and the IRS.
The company, which celebrated its 45th Anniversary on March 5, was founded in Birmingham by Olga Lorizon. Olga's had come under new ownership in recent years, announcing an expansion in 2013 and a menu revamp. Channel 7 received the following statement from the company's senior vice president and COO Michael Kosloski on Friday:
This Chapter 11 filing won't have an impact on Olga's Kitchen operations, our employees or any element of Olga's iconic brand that the metro Detroit community has come to know and love during the last 45 years. This is a complicated financial situation on behalf of ownership, but our 27 metro Detroit locations will continue to operate as these financial matters are resolved.
Update, 06/12, 5:24 p.m.: The buildout for Olga's in downtown's Compuware Building caused the bankruptcy Kosloski tells Crain's.
We’ve been able to turn around the company, and now, all 28 restaurants are profitable, but we couldn’t continue to service the debt . . . we needed to protect ourselves while we raise some capital and prepare for a sale.
The company posted the following message for fans: