Turkey Leg Hut Files for Chapter 11 Bankruptcy Amid Legal and Financial Struggles

Turkey Leg Hut declares bankruptcy

In light of the financial struggles faced by the Turkey Leg Hut, owner Nakia Holmes has announced plans to make changes to the restaurant. This comes after the restaurant filed for Chapter 11 bankruptcy on Tuesday, March 26, in the 127th Judicial District Court in Harris County. The filing was prompted by a judge’s ruling ordering Holmes and former co-owner Lyndell Price to pay over $900,000 to a former business partner.

The Turkey Leg Hut has been embroiled in legal issues and controversy since its opening in 2016. The restaurant has been at the center of discussions on race and gentrification in Houston. Despite these challenges, the Turkey Leg Hut remains a popular spot in the community.

The fire at the restaurant’s business office and ongoing legal issues have contributed to the financial troubles faced by the Turkey Leg Hut. In a court hearing on Tuesday, a receiver was appointed to handle the restaurant’s assets and funds to help pay off debts. The receiver will oversee negotiations with financial stakeholders to reposition the business.

The Turkey Leg Hut owes $2 million in state tax revenue and is also facing a lawsuit from former business partner Steve Rogers. These factors have led to significant financial challenges for the restaurant. Filing for Chapter 11 bankruptcy will put a stop to collection efforts while allowing time for negotiations with stakeholders to reposition the business.

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