Troy-based Olga's Kitchen Inc., the restaurant chain known for its Mediterranean-inspired gyros such as the "Original OLGA," signature sandwiches, hand-tossed salads, and snackers, has filed Chapter 11 bankruptcy.

Olga's filed for bankruptcy protection in Detroit federal bankruptcy court on June 11, 2015. According to the filing, the privately held company owes between $1 million and $10 million to 49 creditors. The filing stated that Olga's has between $1 million and $10 million in assets.

The filing indicates that the company also owes an "unknown" amount of taxes to the IRS and the state of Michigan. Though Olga's filed for Chapter 11 reorganization, the filing did not address the company's reorganization plans.

In late 2014 and in 2015, Olga's Kitchen said that it was poised to expand by opening new franchises in Chicago, Philadelphia and other Midwestern cities in the next five years. However, financial problems have mounted. Some of Olga's Kitchen's largest creditors include RBS Citizens of Detroit ($2.4 million), and food service supplier Sysco ($1.2 million).

Olga Loizon founded Olga's Kitchen. She opened her first restaurant in Birmingham, Michigan in 1970. Over 45 years later, Olga's has dozens of restaurants serving 19,000 pieces of Olga Bread each day.

Olga's Will Keep its Doors Open

Olga's Kitchen Senior VP and COO Michael Kosloski issued a statement on Friday stating that the Chapter 11 filing won't impact operations, their employees, or any element of Olga's iconic brand. He said that it is a complicated financial situation, but their metro Detroit locations shall continue to operate as the company resolves their financial matters.

Kosloski said that Olga's is not going anywhere.

If you have a company that is seeking protection under Chapter 11 bankruptcy, contact an experienced bankruptcy attorney from our directory!