Shula’s Steak House Files for Bankruptcy

by San Antonio Attorney

Shula’s Steakhouse, located in downtown Allentown recently filed for bankruptcy.  The steakhouse filed in the Eastern District of Pennsylvania last Monday under the Chapter 7 bankruptcy code, a section which stipulates the liquidation of a business.

The steakhouse currently holds assets between $0 and $50,000 and owes creditors a hefty amount of $500,000 to $1 million dollars, according to the petition.

Kostas Kalogeropoulos, a general partner in the steakhouse and the managing member of Northwood I of Center Valley, signed the bankruptcy petition.

The restaurant suffered problems of overdue rent and left in the middle of the lease, which eventually led its lessor, the Promenade, to sue the Steakhouse.  The steakhouse moved to Allentown but eventually closed six months after its opening.

Kalogeropoulos stated in the bankruptcy petition that the steakhouse failed to attract a huge clientele that might have saved the establishment from closing.  Only a few people can afford expensive steaks on a daily basis.

The general partner added that the relocation was supposed to support a revitalization of Allentown but customers who can shell out $75 a meal for fine dining was more difficult than they thought.

Robert Zarco, the attorney for Steakhouse Hospitality Associates, stated that they operated the Allentown restaurant as a franchise.  They are also liable for debts to the suppliers.

Zarco added that the suppliers can claim this debt through bankruptcy court.

A developer has been asked by a lot of restaurants regarding replacement of Shula’s vacated space, according to a City Center spokesman.

Zarco has encouraged gift card holders can avail of the services through the Shula’s Steak corporate website in order to purchase goods such as steak sauce, steaks, football apparel, memorabilia and a book co-written by former football coach Don Shula, after which the chain was named.

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