HOUSTON – The Turkey Leg Hut, a Houston restaurant famous for its food, celebrity sightings, dress code, and legal issues, has declared bankruptcy.
On March 26, the Turkey Leg Hut & Company, LLC. filed for Chapter 11 bankruptcy. When a bankruptcy petition is filed, all collection efforts must cease immediately under section 362 of the Bankruptcy Code.
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The restaurant is still open and accepting reservations online.
Turkey Leg Hut owner Nakia Holmes released the following statement to the Turkey Leg Hut Instagram account:
“Turkey Leg Hut (the “Company”), a staple of the Houston food scene, and nationally known for its famous cuisine, today announces that it has taken steps to reposition and strengthen the Company as it continues serving its community.
The Company has initiated a voluntary court-supervised Chapter 11 process that will allow it the necessary flexibility to continue ongoing discussions with all financial stakeholders. In connection with the filing, the Company has sought approval to continue its operations while meeting its obligations to all stakeholders, employees, suppliers, and vendors.
Turkey Leg Hut remains committed to its purpose: serving the Houston community and beyond. As we go through this process, we ask for continued support. We are determined to achieve a positive outcome.
We thank our loyal customers, employees, and the greater Houston community for their support.
The story of Turkey Leg Hut is not yet written. Our goal is to make you proud.
Nakia Holmes”
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The Turkey Leg Hut faced another legal setback earlier this year when a judge ordered Nakia’s estranged husband, and former co-owner Lynn Price and the restaurant to pay over $900,000 in a lawsuit brought by former partner Steve Rogers. The dispute arose from an agreement where Rogers claimed Holmes and Price defaulted on a $1.5 million buyout deal, only paying $600,000 before halting payments in Nov. 2022. Rogers’ attorney argued for urgent action, noting the restaurant’s existing financial troubles, including a $1.3 million lawsuit from US Foods.
The court ruled in Rogers’ favor, mandating payment of the remaining $931,111.12.
Rogers was represented by Sean Roberts of Roberts Markland LLP who released the following statement to KPRC 2:
“When the judgment was reached earlier this month, we urged the courts to provide immediate relief given Turkey Leg Hut’s financial position,” expressed Markland. “However, the hearing on the receiver is automatically stayed now that Turkey Leg Hut & Company LLC filed Chapter 11 bankruptcy. There is a receiver in the federal system called a “Trustee” that will account for TLH’s assets and begin paying or making arrangements to pay all outstanding debts.”
It’s been quite a year for The Turkey Leg Hut, including its business office catching fire in the early hours of March 9 near Houston’s Third Ward. No one was hurt but the fire gutted the place.
Back in Jan. 2023, reports circulated about financial trouble at the popular eatery.
Turkey Leg Hut also made headlines in February, after one of the founders, Lynn Price, and more than half of the business’s employees were reportedly fired.
This story is developing. Please check back for updates.