California-based diner chain files for Chapter 11 bankruptcy after 36-year run

Just over a month after closing its Calabasas location, a beloved Southern California diner chain is filing for Chapter 11 bankruptcy protection.Marmalade Cafe, which opened its first location on Montana Ave in Santa Monica in 1990, filed for Chapter 11 on Wednesday, citing, “rent disputes and mounting supplier debts.”The chain had expanded to eight restaurants across SoCal, though four had closed in recent years, including two this year alone.The Calabasas restaurant closed on August 1, while the Santa Monica location on Santa Monica Boulevard closed a month prior, which the company attributed to, “unsustainable financial losses and a lack of rent relief,” in the filing.They also closed the Original Farmer’s Market location in May 2026, with the original Montana Avenue location in Santa Monica closing in May 2024.The filing also added that the company once employed upwards of 200 people, though they started downsizing in 2024 and their footprint dwindled to approximately 50 employees in mid-2026.California's top news, sports and entertainment delivered to your inbox every day.

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Never miss a story There are just four Marmalade Cafe locations still open in Malibu, El Segundo, Sherman Oaks and Westlake Village.The company’s balance sheet included in the filing listed total assets of $12.7 million, though their net income was -$680,314.While they listed between 50 and 99 creditors, they identified 20 by name, with unsecured debts totaling over $2.4 million.Some of its largest unsecured debts include Gilmore Farmers Market ($481,150), US Foods Inc.($394,711), California Department of Tax and Fee Administration ($349,014), Sunrise Produce ($293,239), Sysco Ventura Inc.

($239,603), Global Merchant ($141,952) and K&M Food Service ($116,067).It’s unclear if the Chapter 11 proceedings will result in the f...