Fried Chicken Chain Yardbird Files for Chapter 11 Bankruptcy Protection
American fried chicken chain Yardbird filed for Chapter 11 bankruptcy with $25 million in debt, closing several locations while keeping remaining restaurants open during restructuring.
The American restaurant chain Yardbird, specializing in fried chicken and a bar concept, has filed for Chapter 11 bankruptcy protection in a US court.
Restaurant Closures and Financial Crisis
As part of the preliminary steps leading up to the filing, the chain closed three of its branches in major cities: Denver, Los Angeles, and Miami. Currently, the chain retains three directly owned branches and two additional franchised locations.
The group's Chief Restructuring Officer, Albert Alturo, stated in a court filing that the causes of the crisis include high expansion costs, a complex capital structure, operational challenges, and structural changes in the restaurant industry following the COVID-19 pandemic.
Yardbird was founded in 2011 in Miami Beach and opened its second branch in Las Vegas in 2015. In 2017, the private equity firm TriSpan became a minority investor and later took full control of the company.
"The entry of the fund led to an accelerated expansion campaign in major US cities, a move that required extensive capital investments and dragged the company into accumulated debts of approximately $25 million," noted court filings.
Industry Trends and Future Outlook
The crisis intensified following the pandemic, which led to sharp performance disparities between branches. While some locations remained profitable, others were severely impacted by shifts in customer traffic patterns, a decline in tourism, and reduced convention activity.
As part of the legal proceedings, the chain reached a preliminary agreement to sell its assets to a "Stalking Horse Bidder," which will remain subject to higher or better bids later in the sales process.
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Bankruptcy filing aims to address past debts and strengthen the balance sheet.
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Remaining active restaurants will stay open and continue serving customers as usual.
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The difficulties reflect a broader US market trend in 2026 marked by rising restaurant bankruptcies.
Yardbird's troubles join a wider market trend in 2026, which has seen an increase in bankruptcies within the restaurant sector due to consumer price sensitivity, economic uncertainty, and rising financing costs. This wave has affected a wide range of market players, from franchisees of chains like Wendy's and Moe's, to concepts like Salad and Go, and On the Border, which filed for liquidation.
