Specialty bars and restaurants are having a difficult time staying in business lately, as several have closed down operations and filed for bankruptcy protection.
Bars and restaurants with niche themes attract a subsection of the public that is interested in the particular gimmick, but they often sacrifice business by not appealing to the general public.
Among the reasons stated for filing for bankruptcy are severe hospitality industry economic challenges, including inflationary costs and expenses, an extremely difficult labor market, and sharply reduced consumer spending.
Related: Unusual bar and restaurant chain files Chapter 7 bankruptcy
Specialty bars shut down locations
One significant specialty bar to recently close and file for bankruptcy protection was dog bar chain Bar K, which filed for Chapter 7 bankruptcy liquidation on Aug. 4 after shutting down its three locations in Kansas City, Mo., St. Louis, and Oklahoma City on July 29.
Another bar theme that has suffered from bankruptcy filings is axe- or hatchet-throwing bars.
Sacramento-area axe-throwing themed chain Smart Axe, which filed for bankruptcy in September 2024 closed its Rancho Cordova, Calif., location.
Also, Buffalo, N.Y., hatchet-throwing bar, Hatchets & Hops, sold a location, closed a location, and filed for Chapter 11 bankruptcy in March 2024.
Specialty bars filing for bankruptcy:
- Bar K, Chapter 7.
- Smart Axe, Chapter 11.
- Hatchets & Hops, Chapter 11.
Image source: Shutterstock
The Maple Leaf Pub files for Chapter 11 bankruptcy
And now Houston Midtown sports bar The Maple Leaf Pub, which catered to enthusiastic hockey fans for almost 20 years, filed for Chapter 11 protection after Texas state tax officials seized the property and shut it down for alleged unpaid taxes.
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The sports bar filed its Subchapter V petition in the U.S. Bankruptcy Court for the Southern District of Texas on Aug. 12, listing $50,000 to $100,000 in assets and $500,000 to $1 million in liabilities.
All pending litigation is subject to an automatic stay as the bankruptcy case proceeds.
Related: Iconic perfume company files Chapter 11 bankruptcy
The debtor’s most significant creditor is the Texas Comptroller of Public Accounts, owed $344,000 in unpaid alcohol and sales taxes since August 2018, the Houston Chronicle reported.
The debtor also owes over $422 in delinquent property taxes.
The state reportedly seized the property on July 31, and it will remain closed until the taxes are paid, a state comptroller spokesperson said.
Texas bar owners will not reopen
The bar’s owners Sean and Olivia Blair have decided to move on and not continue as owners of the bar, as it would be difficult to find new investors to pay off the debt and reopen the bar, CultureMap reported.
Sean Blair also disputed the amount owed to the state comptroller, as a state audit did not consider certain details, such as losses from spilled liquor and drinks that take one and a half ounces of liquor instead of one ounce.
While the debtor wanted to fight to remain open, the amount owed was not attainable for a small business like The Maple Leaf Pub, he said.
Rising costs of labor and beer also made it difficult for the bar to continue operating.
The debtor said that kegs of the bar’s most popular beers have doubled in price, requiring The Maple Leaf Pub to significantly raise the price of a pint, which customers were resistant to paying.
Employee wages rose significantly after the Covid-19 pandemic, and customer numbers began to slide as streaming made it easier for people to watch hockey games or other sports at home.
Houston bar’s economic issues:
- $344,000 in alleged unpaid alcohol and sales taxes.
- Rising cost of beer.
- Rising cost of labor.
- Proliferation of sports streaming at home.
The Blairs established the bar in 2006 after having an unsatisfactory experience trying to watch the Calgary Flames in the 2004 Stanley Cup Finals at a bar, according to The Maple Leaf Pub website that was still operational on Aug. 12.
The Maple Leaf Pub’s specialties:
- Canadian beer.
- Canadian whiskeys.
- Full kitchen.
- NHL hockey.
- NFL football.
- College Football.
- MLB baseball.
The bar’s website listed over two-dozen specialties, including Canadian beer, Canadian whiskeys, a full kitchen, NHL hockey, NFL football, College Football, MLB baseball, but NBA basketball was not listed.
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