Restaurant chain once frequented by Kardashians files for bankruptcy after 36 years
Marmalade Café Files for Chapter 11 Amid Rising Costs and Lost Locations
The long‑standing Southern California brunch spot Marmalade Café, which has been serving diners since 1990, officially entered Chapter 11 bankruptcy on September 2. In its petition the restaurant cited mounting supplier debts, rent disputes and a net loss of $680,314, despite listing assets of $12.7 million.
Marmalade Café has been a staple in the Los Angeles area for more than three decades. The chain’s first storefront opened in Santa Monica and over the years expanded to include private catering for high‑profile clients such as Boeing, Mattel, CBS and Warner Bros. The Calabasas location, a former favorite of the Kardashian family, closed in June after construction at the shopping center disrupted parking and slashed sales. The Santa Monica site shuttered amid losses tied to the Palisades Fire, while the Original Farmers Market outpost folded when it could not regain pre‑pandemic traffic.
“Unfortunately, the ongoing construction throughout the shopping center has resulted in a devastating decline in business,” the café posted on Facebook in July. “Despite our best efforts to weather these challenges, and after seeking rent relief from our landlord during this extended construction period, the landlord declined to help. With construction expected to continue for an extended period, we simply cannot sustain the financial losses any longer.”
The petition lists debts exceeding $1 million owed to Gilmore Farmers Market, US Foods, Sysco Ventura Inc., and the California Department of Tax and Fee Administration. While the café’s assets total $12.7 million, its losses have prompted a Chapter 11 filing, the latest blow to a business that once boasted over 200 employees before trimming its workforce to about 50.
Out of its former network of eight restaurants, only four locations remain open: El Segundo, Malibu, Sherman Oaks and Westlake Village. Management said those sites are “very healthy and very strong,” although the loss of the Calabasas outlet was described as a key driver behind the bankruptcy filing.
The café’s troubles mirror a broader crisis gripping the restaurant industry in California and beyond. Rising rents, wages, insurance and utility costs are forcing many well‑established chains to close. Recent examples include Fireman Hospitality, Salad & Go, FAT Brands (the parent of Fatburger), Johnny Rockets, Red Lobster, Carl’s Jr. and the nationwide shuttering of On the Border restaurants.
“Longevity and a loyal customer base are valuable, but they don’t necessarily protect a restaurant when the underlying cost structure changes faster than the business can adapt,” said Andrew Gruel, founder of American Gravy and a Huntington Beach city councilman, in an interview with Fox News Digital. “The operators who survive will likely be those who can adapt their menus, staffing, hours, footprint and overall business model while maintaining the experience that brings customers back.”
Marmalade Café has not yet released a formal statement beyond the bankruptcy filing. The filing was received by the U.S. Bankruptcy Court in Los Angeles, where the company seeks protection while it reorganizes and negotiates with creditors. The outcome remains uncertain, but the case underscores the volatility restaurants face amid escalating operating costs and unpredictable market conditions.
