Flipdaddy's Brilliant Burgers & Craft Beer Bar, with locations in Newport, Mariemont, Symmes Township and Union filed for Chapter 11 bankruptcy on Dec. 6.
According to its filing, the company owes more than $2.3 million to 19 creditors.
Flipdaddy's CEO Tom Sacco signed off on the filing. Sacco, who took over as the new CEO of the company in March, was preceded by founder, Bob Dames. He opened his first location in Mariemont and expanded quickly, opening three restaurants in three years. Fort Thomas Matters reported in 204 that he had eyes on opening a location in Fort Thomas at the Fort Thomas Plaza before deciding on a standalone location at Newport Pavilion.
RELATED: Flipdaddy's Newport Pavilion Sets Opening Date (April 2015)
Flipdaddy's opened its first location outside of Greater Cincinnati in 2017, in Orange Beach, Alabama, however that store has already closed.
Chapter 11 bankruptcy allows companies that are unable to service their debts or pay their creditors to remain in control of their business, but under stricter guidelines that courts can oversee.
Most are familiar with Chapter 7 bankruptcy, which allows companies close operations to sell its assets in order to pay creditors.
Flipdaddy's Newport proprietor, Jesse Onate, said that the health of the locations were strong and that the reorganization had to take place in order to realign the company under new management.
He said his Newport location is doing well and the company continues to grow.
|Learn how to get your first month FREE at Orangetheory Newport Pavilion. Call and use code "Fort Thomas Matters."|
According to its bankruptcy filing, some of the debts owed to the 19 creditors, include food and drink suppliers as well as multiple management consulting firms.
Some of the largest are:
$1 million to Thomas Kearney of Naples, Fla.
$455,984 in a development agreement to Guggenheim of Frisco, Texas.
$329,078 to Gordon Food Service of Springfield, Ohio
$104,000 to the Fortuity Group of Detroit
$20,404 to Coca-Cola Bottling Co. of Charlotte, N.C.