The Only Recap Of Bar Louie's Downfall You Need

Disasters can happen in the restaurant business, but it's rare for a downfall to happen overnight. Bar Louie is a great example. The once-thriving and expanding Chicago-born gastrobar that has crept toward catastrophe over the last several years. But what factors led this chain — succeeding for the better part of three decades on its neighborhood appeal — into a downward trend that saw it close roughly three-quarters of its locations? A look at the slow-then-sudden rise of the chain only paints part of the picture of how Bar Louie fell off its pattern of success.

Known for its extensive cocktail menu paired with brunch and dinner entrees or bar snacks suited for any boozy bash, Bar Louie's footprint wasn't all that had expanded from its founding in the early 1990s. Over time, liabilities became a burden and growth slowed, leading to multiple restructuring plans and the appointment of new leadership to stay afloat. Not only will the details illuminate how the chain reached its current position, but they will also offer a glimpse at what might come next.

As the 1990s got underway, Chicago was a hub of cultural significance, including the very first Lollapalooza and the rise of Michael Jordan's dynastic Chicago Bulls. Around the same time, restauranteurs Roger Greenfield and Ted Kasemir opened the first Bar Louie on West Chicago Avenue, crafting the atmosphere of a neighborhood tavern. After styling itself as the Original Gastrobar, the brand became known for its handcrafted cocktails — particularly martinis — and pub fare. An array of starters ranging from nachos and pretzel bites to cheese curds and calamari are supported by burgers, sandwiches, flatbreads, and salads, as well as classic entrees like citrus grilled salmon and steak frites.

But the star of the chain remains its drink menu with cocktails and signature martinis like the campfire-themed s'mores martini; the blackberry, peach, and pineapple flavors of the Midnight Berry martini; and the Mean Bean espresso martini. Bar Louie boasts each of its locations are built around the preferences of the neighborhood it serves, and a focus on community is apparent in its recommendations for date nights — centered around the restaurant — with ideas for sights and attractions in the area. Additionally, before celebrating its 35th anniversary, some of the speed bumps in the chain's decline had prompted a brand refresh that included tech upgrades like OpenTable reservations and new features for its rewards app.

Expansion for Bar Louie kicked off in 1998 with modest growth to seven locations within a few years. Halfway through the aughts, another push at furthering reach came with the beginning of franchising. Within 12 years of the initial buildup, 44 restaurants had cropped up around shopping malls and other business districts across the country. In 2010, the chain was acquired by the private equity firm Sun Capital Partners, Inc. and a boom would see the number of locations roughly triple to 134 by 2019.

At one point, Bar Louie had planted a flag in 29 different states as its American fare and craft cocktails, served at locations often equipped with garage doors open to patios, found happy hour celebrants gravitating to the atmosphere. Within that time period, Chief Operating Officer James "Smokey" Hughes had retired years after his tenure as senior vice president at TGI Fridays and well before that chain would become one of several filing bankruptcy in 2024. Tony Wehner filled his position little more than two years before financial troubles would require a restructuring plan even before lockdowns rocked the industry.

When you learn that a company went bankrupt in the year 2020, it's reasonable to assume that the COVID-19 pandemic was a major factor. However, in Bar Louie's case, the restaurant chain had already filed its Chapter 11 restructuring plan before many in the United States had even heard about the virus spreading across the globe. Unlike Logan's Roadhouse, the once-bankrupt steakhouse that had temporarily shuttered all its locations before its own comeback, massive liabilities had prompted Bar Louie's decision to close nearly 40 underperforming locations — almost a third of the total restaurants open at the time — in order to attempt to bail out the sinking ship in January 2020.

Then-CEO Tom Fricke had expressed how the focus had shifted to salvaging the profitable locations after growing costs and struggling restaurants had brought Bar Louie's liabilities to around $140 million when the company's assets sat around $85 million. Having established a 90-day plan to exit bankruptcy, the financial services company Antares Capital LP doled out $82.5 million to acquire the brand only to see the troubles continue.

Exiting bankruptcy may have been a positive sign of life for Bar Louie, but it hardly meant the chain's financial problems had been put in the rearview mirror. By the end of 2020, the number of locations had been whittled down to 73, split between 23 franchise restaurants and 50 that were corporate-owned. The trouble was that the emergence from Chapter 11 came as the economy continued to reel from supply chain breakdowns, uncertainty, and a consumer base that was leery that the worst of the pandemic had yet to come.

In 2022, Bar Louie reported a $5.3 million loss and a new CEO, Brian Wright — formerly of Tijuana Flats and the all-but-vanished pizza chain Bertucci's — succeeded Fricke, who'd left the company halfway through the year. New leadership did not translate directly to positive results, though — by the end of 2023, net losses had nearly tripled to $14.6 million and yearly revenue had dropped almost $2 million, even amdist promotions like $2 mimosas with brunch and half-price martini Mondays. While Bar Louie was one of many businesses struggling to navigate through the COVID-19 era, continued closures brought the number of restaurants down to 66 by 2023 as the company drew closer to its second bankruptcy.

As Bar Louie continued reducing its reach in an effort to balance its books, March 2025 came with the announcement that the company was seeking Chapter 11 bankruptcy again. This meant another round of restaurant closures for the chain that listed its assets in the $1 million to $10 million range against liabilities that fell between $50 million and $100 million. Only 31 corporate-owned locations remained as the company initiated a plan aimed at maintaining business as usual while restoring order within 120 days by selling off assets.

Details about the bankruptcy had revealed financing of nearly $2.5 million with a 12.5% interest rate to keep the restaurants operational while ensuring debts were paid off. That included around $1.8 million owed to US Foods Dallas and almost $600,000 to Bar Louie supplier Edward Don. As it happened, it would be more than 120 days before the chain would find itself steered back toward a positive direction under new ownership.

Bankruptcy — even multiple bankruptcies — doesn't appear to be the end of Bar Louie's story. Just like Red Lobster emerged from its 2024 bankruptcy with a new owner and a new CEO to chart a nostalgic comeback, October 2025 marked the beginning of yet another new chapter for the gastrobar. While the specifics of the deal had not been made public with the announcement, Dallas-based Sun Holdings acquired Bar Louie and its roughly 40 locations across the country with an eye on the future.

At the time of the acquisition through the affiliate Louie Restaurants, Sun Holdings boasts operation of over 1,800 retail and hospitality locations, including franchises in Applebee's, Burger King, GNC, IHOP, and hotels like Hilton and Marriott. A statement from Sun Holdings' CEO Guillermo Perales conveyed the interest of using Bar Louie for continued growth, but on a different path from simply franchising. The release about the acquisition teased an evolution to "new-concept development and strategic acquisitions." It remains to be seen what exactly that means, and if the third time will wind up being the charm for the famed gastrobar.