A popular Ocean City, Maryland, seafood restaurant has filed for bankruptcy but the owner says that its not closing anytime soon.
Brooks is the CEO and sole shareholder of Satellite Restaurants, the Crabcake Factory’s parent company. The filing under Chapter 11, subchapter 5, only includes the restaurant on 120th Street and not the two other independently owned Crabcake Factory locations in Ocean City and Delaware, the report said.
On the list of debts is more than $193,000 owed to the IRS for the tax period ending on Sept. 30, 2009 and about $16,000 in legal fees and $6,800 for a state tax lien, according to OC Today.
In addition, the filing disputes a wage and hour suit filed by a group of employees for unpaid labor, the report said. Court documents obtained by OC Today state that Brooks has less than 50 creditors, assets of less than $100,000 and liabilities of up to $500,000.
Any challenges to Brooks’ self-designation as a “small business debtor” must be filed with the court and served on the party in question by Nov. 27, per OC Today.
In a post on Facebook, Brooks said that the filing does not mean that the restaurant will be closing. It has been open for almost 25 years.
“Plain and simple Crabcake Factory has been in business close to 25 years and like many many others if has accrued aging debt which is accruing interest and penalties,” Brooks posted on Facebook on Oct. 27. “We wanted to be proactive in establishing a plan that moves this company forward for the next 25 years.”