Marmalade Cafe Files for Bankruptcy Amid Retail Challenges
Encino-based Marmalade Cafe, a Southern California brunch chain with roots dating back to 1990, has filed for Chapter 11 bankruptcy protection. The company cited financial strain from ongoing construction at the Commons at Calabasas and losses due to last year's Palisades fire as key factors in its decision. Marmalade Cafe reported estimated assets and liabilities between $1 million and $10 million, with over $1 million owed to suppliers like Gilmore Farmers Market and US Foods. The chain has been closing locations this year, including a nearly 30-year-old outlet at the Commons after construction reduced monthly sales by $50,000. Despite these setbacks, Marmalade Cafe's director of operations remains optimistic about its four remaining stores in El Segundo, Malibu, Sherman Oaks, and Westlake Village. Marmalade is not alone; other California restaurant chains like FAT Brands and Friendly Franchisees Corp., a Carl’s Jr. franchisee, have also filed for bankruptcy this year.
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