801 Chophouse Chapter 11 Bankruptcy: High-End Steakhouse Chain Restructures $18.7 Million Debt
801 Chophouse, the upscale steakhouse chain that brought premium dining to the Midwest, has filed for Chapter 11 bankruptcy protection. Parent company 801 Restaurant Group LLC submitted its petition to the U.S. Bankruptcy Court for the District of Kansas on April 10, 2026, listing $18.7 million in liabilities against nearly $15 million in assets—a financial restructuring that will determine whether the 25-year-old brand survives or becomes another casualty of the post-pandemic restaurant industry .
The filing represents a critical juncture for the Des Moines-based company, which operates multiple concepts including 801 Chophouse, 801 Fish, and 801 Local across Iowa, Nebraska, Missouri, and Kansas. While the bankruptcy immediately triggered closures at two Omaha locations, the company’s flagship Des Moines restaurants remain open as management pursues a court-supervised reorganization .
This comprehensive analysis covers 801 Chophouse’s Chapter 11 filing details, the financial pressures that led to bankruptcy, which locations are affected, and what diners can expect as the steakhouse chain attempts to restructure its way back to profitability.
The Chapter 11 Filing: What Happened
April 10, 2026 Bankruptcy Petition
801 Restaurant Group LLC filed its Chapter 11 petition in Kansas City, Kansas, on April 10, 2026, initiating a court-supervised reorganization process designed to allow the company to continue operating while restructuring its debts .
Key financial details from the filing:
- Assets: Nearly $15 million
- Liabilities: $18.7 million
- Deficit: Approximately $3.7 million negative net worth
- Filing location: U.S. Bankruptcy Court for the District of Kansas
The Chapter 11 process allows 801 Restaurant Group to maintain control of its operations as a “debtor in possession” while working with creditors to develop a reorganization plan. This differs from Chapter 7 liquidation, which would have meant immediate closure and asset sales .
Immediate Impact: Omaha Closures
The bankruptcy filing had immediate operational consequences. Two 801 Chophouse locations in Omaha, Nebraska, closed their doors following the Chapter 11 announcement . The closures affect both the downtown Omaha restaurant and the West Omaha location, eliminating approximately 100 jobs and reducing the chain’s footprint in Nebraska’s largest city.
The Des Moines Register confirmed that while Omaha locations closed, “the Des Moines restaurants remain open” and the company is “working to restructure its debt” .
The 801 Restaurant Group Portfolio
Multiple Concepts, One Company
The bankruptcy affects not just 801 Chophouse but the entire 801 Restaurant Group portfolio :
| Concept | Description | Locations |
|---|---|---|
| 801 Chophouse | Premium steakhouse, dry-aged beef, extensive wine list | Des Moines, Cedar Rapids, Omaha (closed), Kansas City |
| 801 Fish | Upscale seafood restaurant | Des Moines, Omaha |
| 801 Local | Casual American dining | Des Moines |
The diversification strategy—offering steak, seafood, and casual options under one corporate umbrella—was designed to capture different market segments and dining occasions. However, the bankruptcy filing suggests the model proved unsustainable under current economic pressures.
The 801 Chophouse Experience
801 Chophouse built its reputation on premium ingredients and traditional steakhouse atmosphere. The menu features USDA Prime beef, dry-aged in-house for 28-45 days, alongside classic steakhouse sides and an extensive wine list focused on California cabernets and bold reds .
The restaurant’s name derives from its original Des Moines address: 801 Grand Avenue. When founder/owner Joe DeGrazia opened the first location in 2001, he aimed to bring big-city steakhouse quality to the Midwest—a concept that expanded across four states over two decades.
Why 801 Chophouse Filed for Bankruptcy
Post-Pandemic Restaurant Industry Pressures
While 801 Restaurant Group has not publicly detailed specific causes of its financial distress, industry analysts point to several factors affecting upscale dining chains :
Labor Costs: Restaurant wages have increased significantly since 2020, particularly for skilled positions like line cooks and experienced servers. Premium steakhouses require experienced staff commanding higher salaries.
Food Inflation: Beef prices have experienced volatility, with USDA Prime cuts—the foundation of 801 Chophouse’s menu—seeing particularly sharp increases. Dry-aging adds further cost and inventory risk.
Interest Rate Environment: Higher borrowing costs affect restaurant groups carrying significant debt loads, making refinancing and expansion prohibitively expensive.
Consumer Spending Shifts: Post-pandemic dining patterns show consumers trading down from premium experiences to casual options, particularly amid economic uncertainty.
Commercial Real Estate: Many restaurant leases signed during expansion phases now represent above-market rates as commercial real estate values have shifted.
The Debt Structure
The $18.7 million in liabilities suggests 801 Chophouse carried substantial debt—likely including term loans, equipment financing, lease obligations, and trade credit from suppliers. The $3.7 million deficit between assets and liabilities indicates the company had been operating at a loss, eroding equity over time .
Chapter 11 provides breathing room to renegotiate these obligations, potentially converting debt to equity, extending payment terms, or rejecting unfavorable contracts (like expensive leases).
What’s Next: The Chapter 11 Process
The 120-Day Timeline
Under Chapter 11, 801 Restaurant Group has an exclusive 120-day period to file a reorganization plan, with potential extensions . This plan must address:
- Which locations remain open: The Omaha closures suggest non-performing units will be shuttered
- Debt restructuring: Negotiations with secured lenders, landlords, and suppliers
- Operational changes: Potential menu simplification, staffing reductions, or concept modifications
- New capital: Possible injection of equity or debtor-in-possession financing
Creditor Categories
The bankruptcy filing divides creditors into classes with different priorities :
- Secured creditors: Banks with liens on equipment and real estate
- Priority creditors: Employee wages, taxes, and administrative expenses
- General unsecured creditors: Suppliers, trade creditors, and landlords
- Equity holders: Owners (last to recover, often wiped out)
The reorganization plan must specify how each class will be treated, with secured and priority creditors typically receiving payment before unsecured creditors receive anything.
The “Cram Down” Possibility
If creditors reject the reorganization plan, 801 Restaurant Group could seek court approval to “cram down” the plan over objections—though this requires meeting specific legal standards and demonstrating the plan is fair and feasible .
What Diners Should Know
Des Moines Locations Remain Open
For fans of 801 Chophouse, the critical news is positive: the flagship Des Moines locations continue operating normally . The Chophouse on 801 Grand Avenue, 801 Fish, and 801 Local all remain open for business.
Gift cards and reservations remain valid, though diners holding gift cards should consider using them promptly as bankruptcy proceedings can complicate redemption if locations eventually close.
Omaha Closures Are Permanent
The two Omaha 801 Chophouse locations that closed following the bankruptcy filing will not reopen under current ownership. Employees were laid off, and the spaces will likely be marketed for lease or sale as part of the bankruptcy estate .
Future Uncertainty
While Chapter 11 aims to preserve viable businesses, not all filings succeed. If 801 Restaurant Group cannot develop an acceptable reorganization plan, the case could convert to Chapter 7 liquidation, resulting in closure of all remaining locations.
Diners should monitor local news for updates on Des Moines operations and consider supporting the restaurants during this critical period.
The Broader Restaurant Bankruptcy Trend
Industry-Wide Challenges
801 Chophouse’s bankruptcy reflects a broader pattern in the restaurant industry. Multiple chains have filed Chapter 11 in 2024-2026, including:
- Red Lobster: Filed May 2024, ultimately liquidating hundreds of locations
- TGI Fridays: Multiple bankruptcy filings
- Buca di Beppo: Filed Chapter 11 in 2024
- Hooters: Financial distress and location closures
Upscale casual and fine dining concepts have been particularly vulnerable as consumers reduce discretionary spending and trade down to fast-casual alternatives.
The Steakhouse Segment
Steakhouses face unique pressures: high fixed costs (prime real estate, expensive equipment), commodity price volatility (beef), and dependence on business dining and celebrations—segments slow to recover post-pandemic.
801 Chophouse’s bankruptcy suggests that even well-established regional players with loyal followings struggle to navigate current economic headwinds.
Conclusion: A Midwest Institution at a Crossroads
801 Chophouse’s Chapter 11 filing marks a sobering moment for Midwest dining. The steakhouse that brought dry-aged beef and extensive wine lists to Des Moines, Omaha, and Kansas City now fights for survival in bankruptcy court.
For now, diners can still enjoy a perfectly cooked ribeye at 801 Grand Avenue—though they might want to order that bottle of wine sooner rather than later.
