A popular Port San Luis restaurant Fat Cats Café has filed for Chapter 11 bankruptcy protection but will continue to operate.
According to court papers filed April 26 by Carl Barbettini, president of Fat Cats Café Inc., the company reported estimated assets of less than $50,000 and estimated liabilities of at least $300,000 to its top 20 creditors.
Barbettini told The Tribune: We are doing this now so that we have an opportunity to pay everyone back. He declined further comment.
Under Chapter 11, a company can keep creditors at bay for a time while it reorganizes and works out a plan to repay debts.
In 2010, Fat Cats opened a second location in downtown San Luis Obispo, but that has since closed.
Kaney Foods closed last month after filing for Chapter 7 bankruptcy. In its wake, Patrick Kaney opened Coastal Provisions, known as Kaney Meat and Provisions, to take its place. It is not affiliated with Kaney Foods.
The initial Chapter 11 status conference for Fat Cats is scheduled for June 19 in the Federal Bankruptcy Court in Santa Barbara.