Fat Cats Cafe files for bankruptcy
May 2, 2013
Port San Luis restaurant Fat Cats Café has filed for Chapter 11 bankruptcy, but will remain open. [Tribune]
The popular restaurant has less than $50,000 in assets and at least $300,000 in liabilities to its top 20 creditors, according to court papers filed April 26 by Fat Cats Café Inc. President Carl Barbettini.
Chapter 11 bankruptcy allows a company time to reorganize and create a plan to pay its creditors.
Fat Cats’ top creditors include the Internal Revenue Service, the State of California Board of Equalization, which collects sales tax, Producers Dairy and Kaney Foods.
Kaney Foods closed last month after filing for Chapter 7 bankruptcy.
In 2010, Fat Cats opened a second location on the corner of Santa Rosa and Higuera streets in downtown San Luis Obispo, but that restaurant has since closed.
Fat Cats is scheduled to begin its Chapter 11 hearings on June 19 in the Santa Barbara Federal Bankruptcy Court.