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After declaring bankruptcy on Tuesday, March 26, the Turkey Leg Hut aims to “reposition itself,” according to owner Nakia Holmes.
During a morning court hearing on Tuesday, the Turkey Leg Hut filed for bankruptcy in the 127th Judicial District Court in Harris County, according to reporting from the Chron. The filing follows a mysterious fire at the restaurant’s business office, and a judge’s decision on March 13 ordering owner Nakia Holmes and ex-spouse and former co-owner Lyndell “Lynn” Price to pay more than $900,000 to former business partner Steve Rogers. Rogers, who also owns Bar 5015, sued Holmes and Price in February 2023 for $1.5 million — the value of his remaining shares — but said he only received roughly $600,000 before payments stopped.
According to the Chron, the purpose of Tuesday’s hearing was to determine a court-appointed officer or “receiver” who could seize assets or funds to help pay the outstanding debt. Sean Roberts of Roberts Markland LLP told the Chron that “a trustee will make arrangements to pay Turkey Leg Hut’s outstanding debts and liabilities.”
But now that Turkey Leg Hut has filed for bankruptcy, collection efforts will cease, in line with Section 362 of the bankruptcy code, according to the Chron. The Turkey Leg Hut owes $2 million in state tax revenue to the Texas Comptroller of Public Accounts, in addition to its debt to Rogers.
In a statement shared on Instagram, Holmes announced that the decision was part of a series of steps the restaurant is taking to “reposition” the business, and said the Turkey Leg Hut initiated the Chapter 11 filing to continue discussions with financial stakeholders. According to the statement, Turkey Leg Hut has sought approval to continue its operations as these discussions continue.
After opening in 2016, the Turkey Leg Hut became wildly popular, and was immediately embroiled in tense conversations about race and gentrification in Houston’s Downtown communities. It’s also been at the center of dramatic lawsuits, puzzling blazes, and public staff squabbles.
This story has been updated to include a statement from the Turkey Leg Hut’s owner Nakia Holmes.
