Marmalade Cafe, a well-known fast-casual dining spot based in Encino, has filed for Chapter 11 bankruptcy as of September 2. The cafe, which started in 1990 in Santa Monica, expanded to eight locations across Los Angeles County, specializing in California-inspired cuisine.
Despite receiving investment from Parallel Investment Partners in 2007 aimed at expansion, plans fell through, and business was further impacted by the COVID-19 pandemic. This led to the closure of two stores in 2024 and two more this year.
The decline in customer traffic was exacerbated by ongoing construction at The Commons in Calabasas, where it had operated for nearly three decades. Unable to secure rent relief from its landlord, the cafe announced its decision to close the location.
In its bankruptcy filing with the U.S. Bankruptcy Court, Marmalade reported estimated assets and liabilities ranging between $1 million and $10 million, with significant debts to companies like Gilmore Farmers Market and US Foods Inc. Marmalade is not alone; other LA-based restaurants, including FAT Brands and Sprinkles Cupcakes, have also faced financial difficulties recently.
