The operator of a Village Inn restaurant located in Oldsmar, Florida, has sought Chapter 11 bankruptcy protection after reporting liabilities exceeding $554,000, according to recent court documentation.
VI Oldsmar LLC filed for Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida on September 18, choosing to go through Subchapter V, which streamlines the bankruptcy process for small businesses that meet certain criteria.
Documents reveal the company has around $72,335 in assets against liabilities totaling $554,076, with a count of creditors falling between one and 49.
Among its assets, the restaurant lists roughly $5,235 in cash, $15,000 in inventory consisting of food and paper products, $50,000 worth of kitchen equipment, and about $2,100 in office furniture and equipment.
The principal creditors for the operation include 3682 JAGS LLC, to whom it owes $250,000, followed by the Florida Department of Revenue at $120,400, the Internal Revenue Service at $78,500, and US Foods and Sysco, which are owed approximately $40,301 and $30,000 respectively.
As reported by the Tampa Bay Business Journal, the franchisee has faced challenges stemming from the ongoing repercussions of hurricanes that impacted the Tampa Bay area in 2024, alongside dwindling restaurant sales and escalating operational expenses.
An employee at the Oldsmar location mentioned to The Street that the restaurant remains operational and has no intention of closing its doors.
This filing represents the fifth Chapter 11 bankruptcy petition from Village Inn franchisees managed by Lloyd D. Lehan IV since June, as noted by The Street.
The latest bankruptcy filing follows another by Bay Pines Group LLC, which also belongs to Lehan, last month. This group manages the Village Inn situated on Bay Pines Boulevard in Seminole, Florida.
Village Inn, originally established in Denver in 1958 as Village Inn Pancake House, now oversees over 100 company-owned and franchised locations across various states including Colorado, Florida, Texas, and Arizona, according to its website.
Attempts to reach Village Inn, Lloyd D. Lehan IV, or the Oldsmar location for comments were unsuccessful.
