The Costa Mesa-based Elephant Bar restaurant chain has filed for Chapter 11 bankruptcy, officials announced today.
The company filed in federal court in Santa Ana a motion for approval of $3.3 million of "debtor-in-possession" financing that is aimed at allowing the company to stay in business during bankruptcy proceedings. Executives intend to sell the chain.
Elephant Bar executives blamed the "challenging economic environment and increasing competitiveness of the industry" for the company's financial woes.
"The company reluctantly closed 16 locations this month, and believes these actions will allow it to get back to focusing on operations and enhancing the concept to establish a stronger foundation for the future," Elephant Bar President and chief executive Robert Holden said.
Twenty-nine locations, including Torrance, remain open.
--City News Service