Marmalade Cafe, an Encino-based upscale casual restaurant chain popular for its brunch offerings, filed for Chapter 11 bankruptcy protection on September 2.
In the bankruptcy filing, Marmalade Cafe Chief Executive Juan Salcedo reported the cafe's estimated assets and liabilities to be between $1 million and $10 million. The filing also indicated that the chain owes more than $1 million to creditors including Gilmore Farmers Market, US Foods, and the California Department of Tax and Fee Administration, among others.
As of the filing date, Marmalade Cafe continues to operate four locations across Southern California: El Segundo, Malibu, Sherman Oaks, and Westlake Village. The chain’s original outpost opened in Santa Monica in 1990 as a 1,400-square-foot store with limited seating, offering a full bakery, salads, and entrees. Three years later, it expanded to a full-service location in Malibu with 100 seats, eventually growing to offer private dining rooms and catering services for businesses like Boeing, Mattel, CBS, and Warner Bros. Studios.
However, Marmalade Cafe has been closing locations throughout this year. In July, the chain announced the closure of its Calabasas location at The Commons, which had operated for nearly three decades. In a social media post, the restaurant attributed this closure to "ongoing construction throughout the shopping center," which led to a "devastating decline in business." Marmalade Cafe stated that despite efforts to secure rent relief during the extended construction, the landlord declined assistance, making it impossible to sustain the financial losses.
Lindsay Arnold, Marmalade Cafe's director of operations, confirmed that mounting losses from the Calabasas location were a primary factor in the bankruptcy filing. She noted that the rent for the Calabasas spot was just under $80,000, and the construction project, which began earlier this year, reduced monthly sales by $50,000. Arnold explained that as the construction zone expanded, it "completely destroyed" the parking lot, severely impacting the breakfast and lunch business that relied on quick customer turnover. By May and June, Arnold said, the company recognized that the situation could "sink our whole company."
Beyond Calabasas, Marmalade Cafe's Santa Monica location also closed in July, following a move from its original Montana Avenue spot, which shuttered in May 2024. The Santa Monica closure was compounded by losses from last year's Palisades fire. Earlier in the year, the chain's Original Farmers Market location also ceased operations, after struggling to regain its pre-pandemic momentum.
Marmalade Cafe is not alone in its struggles, joining other California restaurant chains that have filed for bankruptcy this year. These include FAT Brands, the Beverly Hills-based parent company of Fatburger and Johnny Rockets, and Friendly Franchisees Corp., a La Palma-based operator of Carl's Jr. restaurants.
Despite the challenges, Arnold expressed optimism regarding the four remaining Marmalade Cafe locations. She described them as "very healthy and very strong," and hopes they "remain open," emphasizing their role as "long-term, established community places."
