Popular restaurant chain files for bankruptcy and issues blistering statement to fans blaming ‘takeover plot’
A popular casual restaurant chain, Hawkers Asian Street Food, filed for bankruptcy yesterday, citing issues stemming from a “takeover plot” in a shocking announcement. The chain, which operates 15 restaurants across seven states, has taken this step due to a lender’s alleged intentions to take over the business.
Chapter 11 Bankruptcy Filing
Hawkers has opted for Chapter 11 bankruptcy protection in order to maintain control of the company. In a statement reported by Nation’s Restaurant News, the restaurant chain emphasized that this decision aims to “preserve the integrity of its brand” and protect it from what they describe as “an overreaching lender.”
Background on Financial Struggles
Last year, Hawkers entered a debt capital agreement with plans to expand the brand into a household name across the United States. They initially reported significant success, boasting an impressive 18.5% growth in sales and successfully opening an additional location. However, the situation changed dramatically in the last two months, with the lender expressing a desire to gain operational control of the Florida-founded chain. Hawkers insists they have never missed a payment.
Commitment to Uninterrupted Operations
The bankruptcy filing is designed to ensure normal, uninterrupted operations and timely vendor payments. The company stated, “This will allow Hawkers to continue normal, uninterrupted operations and vendor payments,” while working to re-stabilize control and secure a successful future for the brand and its dedicated team.
Vision for the Future
Hawkers remains focused on its core goals: protecting the guest experience and prioritizing the safety and well-being of its team members and stakeholders. They expressed optimism, stating, “While Hawkers hopes to negotiate a favorable outcome with said lender, the future of the company remains bright.” The team looks forward to welcoming guests for their favorite Hawkers dishes for many years to come.
Locations and Founding
Hawkers currently operates in Florida, Georgia, Maryland, North Carolina, Tennessee, Texas, and Virginia. The chain was founded in 2011 by four childhood friends—Kaleb Harrell, Allen Lo, Wayne Yung, and Kin Ho—drawing inspiration from Malaysia and Singapore’s famous hawker open-air food complexes.
Diverse Menu Offerings
Hawkers’ eclectic menu features a wide range of Asian street food, including dim sum, noodles, rice, wings, and skewers, alongside “exotic” cocktails.
Recent Loss and Historical Context
In January, co-founder Kin tragically passed away at the age of 46 after a battle with a rare form of leukemia, as reported by Scott Joseph Orlando’s restaurant guide. Additionally, it is worth noting that a stall chef made history in the past by becoming the first hawker restaurant to receive a Michelin star. Chan Hon Meng, who owns the Hong Kong Soya Sauce Chicken Rice and Noodle stall in Singapore, was awarded this prestigious recognition in 2016, marking a significant milestone in street food history.
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