The bankruptcy filings are for restaurants in Arlington, Carrollton and Coppell. The status of the remaining locations, which include those in Richardson, Roanoke and Lewisville, is unclear.
Owner Jason Boso said he intends to reopen and that the Chapter 11 allows Twisted Root a better chance for survival “over the next 18 months of down sales.”
“We are putting locations into Chapter 11 to help us deal with accounts payable, debt service and rent,” Boso said in a statement. “This is not Chapter 7, where you're just closing your doors. There's a big difference between the two.”
Business restrictions meant to curb COVID-19 are behind the company’s precarious financial position, Boso said. Additional safety measures, such as hand sanitizer and social distancing, are hampering Twisted Root’s ability to cover its expenses.
“That's a lot of hurdles to jump, just to get to break even,” Boso said in the statement. “If some components of this equation don't change and we have another spike that requires restaurant closures again, we can expect to see many more restaurants close and forced into Chapter 7 instead of being able to recover via Chapter 11.”
There are 14 Twisted Root locations throughout Texas. All branches are listed as temporarily closed on the company’s website.
A series of renovations began in late 2019 at the Richardson location at 730 E. Campbell Road, where it had been in business for a decade.