Roscoe’s House of Chicken & Waffles has been going through some tough years, but the legendary LA restaurant could reach some resolution in bankruptcy court. Roscoe’s parent company, East Coast Foods, is in the midst of a reorganization to pay off the soul food chain’s debts. Court documents were filed last week, stating that East Coast Foods owes creditors approximately $27 million. But according to the Orange County Register, East Coast Foods estimated the full amount owed to creditors was somewhere between $10 and $50 million.
Roscoe’s woes began in 2015, after an employee filed a discrimination lawsuit. The suit alleged that the plaintiff, Daniel Beasley, experienced various forms of racial discrimination at the hands of all-Hispanic management. Beasley’s claims included unfair treatment in the workplace, issues with shift scheduling. After complaining to HR and Roscoe’s ownership, Beasley was fired. A jury agreed with the complaint, and ordered the company to pay Beasley $1.6 million in personal damages. In 2016, Roscoe’s House of Chicken & Waffles filed for Chapter 11 bankruptcy, to help consolidate debt and remain open. The discrimination case is currently under appeal.
The restructuring has two primary goals. Repay the debts, while maintaining day-to-day operations. Attorney Robert Marticello said that the agreement will not affect daily operations. Marticello added, “Under the proposed joint plan, there are no planned cuts, downsizing, or restaurant closures.”
There are four Roscoe’s locations under the East Coast Foods canopy: Gower, Pico, Pasadena, and Inglewood. But the debt will be paid by all seven Roscoe’s locations, which combined generate $37 million in annual sales. The restructuring agreement also asks that Roscoe’s founder Herbert Hudson, pay creditors at least $3 million a year.
In 2016, Snoop Dogg made a casual offer to save Roscoe’s if the restaurant were to go under. On one condition though: to change the name to Snoop Dogg’s Chicken N’ Waffles.
A judge will review the restructuring agreement in March.
- Roscoe’s House of Chicken and Waffles close to settling bankruptcy debt of about $27 million [OCR]
- Roscoe’s Chicken & Waffles Ordered to Pay Over $1 Million in Racial Discrimination Suit [ELA]
- Roscoe’s Chicken N’ Waffles Files for Chapter 11 Bankruptcy [ELA]
- Snoop Dogg Says He’ll Save Roscoe’s Chicken N’ Waffles if it Comes to That [ELA]