Melt Bar and Grilled files for bankruptcy after nearly $5 million loss in 2022
View a previous report on a lawsuit against Melt Bar and Grilled in the video player above.
COLUMBUS, Ohio (WCMH) -- A chain of grilled cheese restaurants based entirely within Ohio has filed for bankruptcy, documents from federal court show.
The owners of Melt Bar and Grilled filed for Chapter 11 bankruptcy protection on June 14 in U.S. Bankruptcy Court in the Northern District of Ohio. Judge Alan M. Koschik granted an emergency order in the case on Friday, which will allow the chain to pay $100,000 in "wages, salaries and employee benefits" through a KeyBank payroll account, as well as reimburse employee business expenses from the pay period through June 14. However, the order also blocks Melt from paying "severance, vacation pay or bonuses" without additional action from the judge.
In the initial bankruptcy filing, Melt's owner Matthew Fish shared a 2022 income tax return for the business. It reported income of nearly $9 million, but then claimed losses of almost $5 million after factoring in rent for its storefronts, taxes, salaries and wages, and compensation of officers.
Fish also disclosed Melt had standing estimated liabilities of between $1 million and $10 million, with at least 100 creditors it had debts to. He noted the company's liquidated debts were less than $7.5 million.
The owner shared a statement with NBC4 regarding the bankruptcy filing, blaming a "rapidly changing" world and industry after the pandemic with "growing economic issues."
"This gives us the best opportunity to reorganize and rebuild the company," Fish said. "I refuse to let the company I have put my entire life into for the past nearly 2 decades end. I sincerely hope our staff, friends and loyal guests will continue to support us through this difficult decision and transition."
Melt Bar and Grilled closed one of its Columbus shops off of High Street in July 2022, leaving a solitary location at Easton Town Center. Fish cited “very difficult staffing challenges” and “major cost increases” as two specific reasons why he decided to shut it down.
That leftover location at the Columbus shopping center also ran into trouble on May 16, as the Easton Gateway property company sued the restaurant. The plaintiff claimed in Franklin County Common Pleas Court documents that it sent a notice about unpaid rent to Melt on Nov. 9, then a second notice on April 10. The landlord said Melt owes them more than $200,000 in rent, interest and attorney's fees.
A marketing manager for Melt declined to comment regarding the unpaid rent lawsuit. As of Friday, no attorney has filed to represent Melt Bar and Grilled in the case, but a trial is scheduled for March 16, 2025.
Koschik scheduled a status conference in the bankruptcy case for Aug. 6. He gave all of Melt's creditors, excluding government agencies, a deadline of Aug. 27 to file claims on Melt's assets.