WINSTON-SALEM, N.C. — K&W Cafeterias is filing for Chapter 11 bankruptcy, according to a statement released by the company on Wednesday.
K&W will still serve guests at 18 cafeterias during the restructuring.
The full statement is provided below:
“K&W Cafeterias, founded in Winston-Salem in 1937, today announced the filing of voluntary petitions of relief under Chapter 11 of the U.S. Bankruptcy Code. The company will continue to serve guests during the restructuring, in accordance with all local Coronavirus-related operating restrictions. This filing follows the recent closure of six unprofitable locations and will allow the company to reduce its debt and improve liquidity.
‘Over the last few years, our team has made significant progress in modernizing our cafeterias to enhance our guests’ experience, such as the introduction of online ordering and delivery, while preserving the made-from-scratch food quality we have provided guests for more than 80 years,’ said Dax Allred, President and grandson of K&W’s founder. ‘Unfortunately, the impact of COVID-19 and related operating restrictions had a disproportionately negative impact on our loyal guests and cafeteria-style dining. We are hopeful this restructuring will allow our cafeterias to weather the storm and continue serving guests for years to come.’
The company did apply for and received funding under the Payroll Protection Program, which allowed the company to continue to employ more than 1,400 valued and dedicated team members across the Carolinas, Virginia and West Virginia throughout the COVID-19 crisis.
The Company has filed with the Court a series of motions seeking to continue operating its cafeterias as usual and fulfill its commitments to its team members, guests and other stakeholders during the process. The Company intends to continue to pay vendors in the ordinary course for all goods delivered and services rendered after the filing. Today’s announcement follows the closure of six cafeterias: Chapel Hill, Raleigh (Cameron Village), Goldsboro, Salisbury, North Carolina; Greenville, South Carolina and Bluefield, West Virginia.
Dax Allred added, ‘It is a difficult day in our company’s history, but essential for the future of K&W. We are so very thankful for the support of our loyal guests and team members at our locations, who have allowed us to be a part of their lives for generations, and look forward to serving future generations as we emerge from this stronger.'”