Winston-Salem-based chain K&W Cafeterias will continue to serve diners despite filing for Chapter 11 bankruptcy.
K&W Cafeterias, founded in 1937, announced the filing of voluntary petitions of relief under Chapter 11 of the U.S. Bankruptcy Code on Friday.
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The company said it will continue to serve guests during the restructuring, in accordance with all local coronavirus-related operating restrictions.
The company said the filing follows the recent closure of six unprofitable locations and will allow the company to reduce its debt and improve liquidity.
“Over the last few years, our team has made significant progress in modernizing our cafeterias to enhance our guests’ experience, such as the introduction of online ordering and delivery, while preserving the made-from-scratch food quality we have provided guests for more than 80 years,” said Dax Allred, president and grandson of K&W’s founder. “Unfortunately, the impact of COVID-19 and related operating restrictions had a disproportionately negative impact on our loyal guests and cafeteria-style dining. We are hopeful this restructuring will allow our cafeterias to weather the storm and continue serving guests for years to come.”
