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Florida-based Yardbird Southern Table & Bar filed for bankruptcy on Sunday with plans to sell its business after expansion costs, restaurant-level operating challenges, pandemic disruptions, and mounting debt strained its finances.

The polished-casual concept currently operates company-owned restaurants in Dallas, Washington, D.C., and Chicago, along with licensed locations in Las Vegas and Singapore. The company employs approximately 508 people across its corporate and licensed restaurants.

Yardbird plans to continue operating during the bankruptcy process as it pursues a going-concern sale. The company filed several first-day motions seeking permission to maintain payroll and employee benefits, pay certain vendors, continue customer programs, and use existing cash systems.

The filing lists approximately $24.8 million in funded debt and an estimated $24.2 million in unsecured claims.

Brightwood Loan Services and related lenders are owed roughly $13.3 million under a credit agreement backed by first-priority liens on nearly all of Yardbird's assets. City National Bank of Florida is owed nearly $8.4 million through a Main Street Lending Program loan, and approximately $3.1 million is outstanding under an agreement with restaurant financing and rewards platform inKind.

Yardbird was founded in Miami Beach in 2011 and became known for fried chicken, Southern-inspired dishes, weekend brunch, bourbon dinners, and an extensive cocktail and wine program. The business opened a licensed Las Vegas restaurant in 2015.

A private equity sponsor invested in the company in 2017 as Yardbird moved into a period of expansion. The chain subsequently opened restaurants in Los Angeles, Dallas, Washington, D.C., Chicago, Denver, and Singapore. The sponsor became the sole owner of Yardbird Group in 2025 after separating from the company's founders.

The expansion required substantial spending on leases, restaurant construction, architecture, and design. Yardbird took on additional debt to finance those openings and related capital expenditures.

The COVID pandemic complicated the growth effort by closing dining rooms, reducing sales, accelerating reliance on delivery, and changing traffic patterns in several urban markets. Performance eventually diverged across Yardbird's portfolio. Some restaurants continued to perform well, but others struggled with changes in tourism, convention business, consumer behavior, neighborhood traffic, and nearby development.

Losses from underperforming restaurants increased pressure on Yardbird's liquidity. The company closed its Denver restaurant in 2025, followed by its Los Angeles and Miami locations in 2026. It also implemented turnaround plans and made changes to its senior team in an effort to direct resources toward stronger restaurants.

Debt maturities continued to create problems despite the closures and cost-saving efforts. Yardbird attempted to restructure its loan with City National Bank, which matured in August 2025, but the parties did not reach an agreement.

City National Bank sued several Yardbird entities in March for breach of contract and enforcement of the loan documents. The lender has filed a motion for summary judgment, and Yardbird faces an October 1 deadline to respond.

The company began exploring a sale as its liquidity position tightened. Soravine Advisors launched a marketing process in August and contacted more than 170 prospective buyers, including restaurant groups and financial investors.

Twenty-one parties signed nondisclosure agreements. Yardbird ultimately received three nonbinding indications of interest for all or part of the company, but each offer came in significantly below the value of its first-lien debt.

Yardbird subsequently reached an asset purchase agreement with an affiliate of its secured lenders that will serve as the stalking-horse bidder. The proposed transaction would use a credit bid consisting of obligations owed under the company's prepetition loan and debtor-in-possession financing, along with the assumption of certain liabilities.

The stalking-horse agreement does not include a breakup fee, but it provides for reimbursement of up to $275,000 in expenses if another party wins the auction. Yardbird will continue soliciting higher or better offers during the bankruptcy process.

The company is seeking access to $5.4 million in debtor-in-possession financing. The package includes $1.8 million in new revolving credit and a roll-up of existing Brightwood debt at a rate of $2 for every $1 in new money funded.

Yardbird said the financing is necessary to fund payroll, purchase goods and services, maintain restaurant operations, and complete the sale. Without access to the capital and its existing cash, the company warned that it could not continue operating through bankruptcy.

Under the proposed timeline, bids would be due October 27, followed by an auction November 2 and a sale hearing November 9. Yardbird is seeking to close the transaction by November 30. All dates require court approval.

"The Debtors' ultimate goal in these Chapter 11 Cases is to achieve a value-maximizing result for their stakeholders through the sale of the Debtors' assets," chief restructuring officer Albert Altro said.

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