- CPG Restaurant Group filed Chapter 11 on Oct 15, 2025, preserving operations as a debtor-in-possession while restructuring debts and seeking new financing.
- The filing reflects broader casual-dining distress—declining same-store sales, rising costs, and widespread bankruptcies and closures across midmarket chains.
In a move that’s becoming all too familiar in the beleaguered restaurant world, CPG Restaurant Group, the operator behind quirky pub and bar concepts like Cheesie’s Pub & Grub and Whiskey Business, has filed for Chapter 11 bankruptcy protection.
The filing, lodged on October 15, 2025, in the U.S. Bankruptcy Court for the Eastern District of New York under case number 1-25-44958, signals yet another chapter in the ongoing saga of casual dining chains grappling with post-pandemic fallout, rising costs, and fickle consumer habits.
CPG, which keeps a low online profile beyond its hiring page, oversees a modest portfolio of eateries and delivery-only operations.
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At its core is Cheesie’s Pub & Grub, a comfort-food haven with just two brick-and-mortar spots serving up elevated takes on grilled cheese sandwiches, mac ‘n’ cheese, chicken tenders, and fries in a laid-back bar setting.
The concept’s origin story is straight out of entrepreneurial folklore: It sprang from a simple lunch craving shared between friends, where one lamented the lack of a spot dedicated to grilled cheese.
That night, founder Chris sketched out a menu and business plan, polished off a sandwich for inspiration, and quit his job within three weeks to make it real.
“Inspired by his terrible eating habits and love for foods he grew up on,” the company’s website recounts, capturing that scrappy, nostalgia-fueled vibe.
Rounding out CPG’s lineup are Whiskey Business, a spirits-focused bar; Lost Reef Lounge; and three ghost kitchens—Broke, High & Hungry and Bob’s Bomb Burgers—that cater to delivery apps without the overhead of dine-in spaces.
With assets and liabilities both pegged between $1 million and $10 million, and fewer than 50 creditors listed, the filing doesn’t scream catastrophe on paper.
As a debtor-in-possession, CPG gets to keep the lights on, manage daily ops under court oversight, and chase fresh financing while hammering out a reorganization plan.
A debtor-in-possession framework, per U.S. Courts basics, lets struggling firms “retain control over day-to-day operations, can obtain new financing, and may propose a reorganization plan while protecting creditors’ interests.”
So far, no major closures have hit, and the chain appears to be chugging along. But don’t let the small scale fool you—this is symptomatic of a deeper rot eating away at bars and pubs.
Restaurant Woes and Statistics
The National Restaurant Association’s latest pulse check paints a grim picture: Just 46% of operators saw same-store sales tick up from August 2024 to August 2025, a dip from 48% the prior month, while 43% reported drops, up from 42%.
“Forty-six percent of restaurant operators said their same-store sales rose between August 2024 and August 2025,” the association noted dryly.
“That was down slightly from 48% of operators who reported higher sales in July.”
It’s a razor-thin margin in an industry where every cover count matters, squeezed by everything from sticky inflation on ingredients and labor to diners trading white-tablecloth nights for quick app orders.
CPG isn’t navigating these waters alone. The past 18 months have been a bloodbath for casual dining, with full-service spots shedding nearly 350 locations in 2024 bankruptcies alone—about 1.3% of the sector’s total, per Technomic data.
The heaviest hits landed on heavyweights like TGI Fridays and Red Lobster, which together shuttered 265 units.
TGI Fridays, the once-ubiquitous Friday’s night staple, pulled the trigger on Chapter 11 in November 2024 after a botched sale to its U.K. franchisee Hostmore imploded.
The chain, down to 163 U.S. spots by then (with 122 franchised and 316 abroad untouched by the filing), aimed to offload assets, ditch bad leases, and trim its footprint by 50 locations.
“This restructuring is the best path forward,” a company statement read at the time, echoing the playbook for survival.
Red Lobster’s tumble was even more public, filing in May 2024 amid endless shrimp promo woes, sagging sales, and a mountain of debt.
It axed 99 restaurants but clawed back, emerging stronger in 2025 with 580 locations intact.
As one analyst put it, these weren’t isolated stumbles but the pruning of an overgrown sector: Full-service dining is now 18% slimmer than in 2019, hammered first by COVID shutdowns and then by the great shift to takeout—now nearly three-quarters of all restaurant traffic, according to the NRA.
A Slew of Restaurant Closures
The carnage spilled into 2025 with Bar Louie, the gastro-pub chain that boomed in the ’90s and early 2000s on urban appeal and upscale vibes. It filed its second Chapter 11 in March 2025 (the first hit in 2020), listing $50 million to $100 million in liabilities against a measly $1 million to $10 million in assets.
Closures rippled through nine states, including fresh shutdowns in the Midwest and New Jersey, leaving just 48 outposts from a 2020 peak of 134. “Bar Louie joins a growing list of restaurant chains filing for bankruptcy in 2025,” noted observers, as the chain’s parent, BLH TopCo LLC, sought to restructure amid lease woes and thinning crowds.
And lets not forget Mexican grill On The Border. The restaurant followed suit in early 2024, closing over a dozen spots and halving its footprint by year’s end before selling to Pappas Restaurant Group.
Buca di Beppo slimmed to 44 core locations post-August 2024 filing, while Rubio’s Coastal Grill offloaded 48 California units in June 2024 and flipped to its lenders for $40 million.
Even niche players like Melt Bar and Grilled (June 2024, blaming economic headwinds and closures) and Pinstripes (September 2025, shuttering underperformers) couldn’t dodge the undertow.
World of Beer Bar & Kitchen, a craft haven turned 70-unit empire by 2015, closed 14 spots in 2024 before emerging in December with expansion plans, now at about 25 locations.
Experts see no quick end in sight. “I think you will see some more,” warned R.J. Hottovy, head of analytical research at Placer.ai, flagging risks for holdouts like Applebee’s, Denny’s, and Hooters, all pruning stores amid 2025 forecasts.
Bloomberg pegged 2024 filings as the highest since COVID’s onset, with chains over $20 million in revenue taking the brunt—fueled by debt hangover, labor crunches, and shoppers favoring value over ambiance.
A 50% spike in cases from 2023 underscored the pain, as operators juggle 20-30% food cost hikes and rent spikes.
And for survivors like Chili’s and Applebee’s, the recipe has been ruthless value plays—think $10 unlimited apps or TikTok-fueled revamps like Walker Hayes’ “Fancy Like” nod to Applebee’s.
McDonald’s is doubling down with a McValue app overhaul for easy deals. But for smaller outfits like CPG, it’s a steeper climb: Balancing that elusive “cool factor” with affordability in a world where 75% of meals happen off-site.
Moving Forward
As CPG’s DIP plan takes shape—details pending—its story underscores a brutal truth: The pub down the street might still pour a solid pint, but in this economy, even grilled cheese dreams need more than charm to endure.
With no word yet on creditor payouts or revamps, all eyes are on whether this under-the-radar filer joins the rebounders or fades into the footnotes.
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