DETROIT – Michigan based restaurant chain Olga's Kitchen has filed Chapter 11 bankruptcy protection.
Olga's owes millions of dollars to multiple creditors, as well as taxes to the state of Michigan and the IRS. More than 10 firms were owed more than $3.5 million, according to the bankruptcy filing.
In 2013, Olga's Kitchen announced an expansion plan that would open over 100 new locations.
Founded in 1970 in Birmingham by Olga Loizon, Olga's Kitchen has been a southeastern Michigan staple for decades.
A statement posted on their Facebook page reads:
"Thank you to everyone who has shared their feedback and reaction to the news reported earlier related to the future of Olga's Kitchen. This Chapter 11 filing won't have an impact on Olga's Kitchen operations, our employees or any element of Olga's iconic brand that the metro Detroit community has come to know and love during the last 45 years. This is a complicated financial situation on behalf of ownership, but our 28 restaurants will continue to operate as these financial matters are resolved. We appreciate your continued support."