Upscale restaurants close, file Chapter 7 bankruptcy

While fast-food chains like Wendy’s and Pizza Hut have gotten a lot of headlines because of the number of restaurants they’re closing, high-end restaurants have also been hit hard.

In my neighborhood in West Palm Beach, City Cellar, which had a 25-year run, closed with little notice, while other high-end operators within a few miles have closed or changed concepts.

That phenomenon is not unique to South Florida.

“Over the past two years, U.S. food inflation has varied. Restaurant and takeout costs rose faster than grocery prices, which began to level off after a sharp increase in 2022,” McKinsey shared in its 2026 report on what U.S. consumers want from restaurants.

Consumers want value, and the perception of what restaurants offer has changed.

Prices for “food away from home” increased nearly 6% from January 2024 to September 2025, driven by rising labor, rent, and material costs. Meanwhile, according to the U.S. Consumer Price Index, “food at home” rose only about 3% over the same period.

As a result, there is a problem in the restaurant.

“If the gap widens, consumers may feel that eating out is worth less than the cost of doing so—putting more pressure on restaurants that are already dealing with high costs and shifting demand,” McKinsey reported.

This has led to several bankruptcy filings, including the recent Chapter 7 filing by Foxdulaney, LLC.

“Foxdulaney LLC, an entity associated with restaurateur Isaac Fox, filed for Chapter 7 bankruptcy March 29 in the U.S. Bankruptcy Court for the Western District of Kentucky. The filing indicates liabilities between $100,001 and $500,000 and unsecured transactions are unlikely to cover any of Business First’s funds.”

The company operates La Chasse, a European-inspired restaurant and The Champagnerie, a champagne bar concept. Both restaurants closed prior to the Chapter 7 bankruptcy filing.

• Debtor: Foxdulaney, LLC, a limited liability company based in Louisville, Kentucky

• Court: US Bankruptcy Court for the Western District of Kentucky

• Issue Number: 3:26-bk-30841

• Date of Filing: March 29, 2026

• Types of Bankruptcy:Chapter 7 Liquidation (Not a Chapter 11 Reorganization)

• Filing Type: Voluntary petition filed by the company

• Judicial Responsibilities: Chief Justice Charles R. Merrill

• Creditor Number: Estimated 1-49
  Source: PacerMonitor

Louisville Business First left multiple messages for Fox last week seeking comment for this story, but he did not immediately respond. It is also unclear who the new owner of La Chasse was.

Owner Isaac Fox started a GoFundme to help his family after the restaurant closed.

“The last year and a half has been full of devastating financial and business struggles….Currently, I am without a business or job and looking at the very real possibility of 2 or 3 bankruptcies, with many outstanding debts,” he posted on the fundraising site.

He asked for $27,000 and has already raised more than $33,000 from at least 100 donors.

More bankruptcies:

His employees have had no luck with their GoFundMe efforts, which include only a basic plea: “To support employees who have lost their jobs.”

A “Support La Chase Staff of Sudden Closure” GoFundMe has raised just $995 of the requested $30,000.

“For Gen X and Baby Boomers, the decision to eat out has changed. These are the generations that have returned to eating out the most — not just ordering less, but reconsidering when restaurant meals are worth it,” Food & Wine reported.

High-end restaurants are feeling the pinch of ongoing trends.

The restaurant story in 2024 was dominated by value propositions, and for good reason. The recent extended period of higher inflation has stretched household budgets even as the overall job market remains healthy, the National Restaurant Association (NRA) shared in its annual State of the Restaurant Industry report.

However, the report showed that price was not the only factor driving people to or from restaurants.

“For many restaurant customers, the experience is more important than the price of the food. And that doesn’t necessarily mean 5-star service. Consumers prioritize cleanliness and courteous and welcoming staff — two goals that are achievable for operators across the restaurant spectrum,” the NRA reported.

RELATED: Another award-winning brewery files for Chapter 11 bankruptcy

This story was originally published by TheStreet on April 2, 2026, where it first appeared in the Restaurants section. Add TheStreet as a preferred source by clicking here.