Buttermilk Eatery owner files for Chapter 11 bankruptcy amid rising sector pressures

Asani Restaurant Group LLC, the owner of the Buttermilk Eatery breakfast and brunch chain, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Middle District of Florida. The petition, lodged on 31 August, lists the company’s assets at over $75,000 and its debts at over $407,000. The filing allows the business to reorganise its financial structure while it navigates ongoing legal and operational challenges.

The bankruptcy follows a lawsuit filed by creditor MGM Investment Properties Inc. on 8 January 2026. The creditor is seeking payment for kitchen equipment allegedly provided to the company in November 2022. Under the terms of the Chapter 11 filing, all litigation is subject to an automatic stay while the bankruptcy case proceeds, providing temporary relief from court proceedings.

Founded in January 2023, Buttermilk Eatery currently operates locations in North St. Petersburg and Pinellas Park, Florida. The chain, which features online ordering and robot food runners, had planned to open a third location in St. Petersburg’s Grand Central District in summer 2026. This new site was intended to take over the former Urban Brew & BBQ premises, though the company has not commented on whether the expansion plans will continue.

The petition identifies several key unsecured creditors, including Spartan Capital, which is owed over $178,000, and Toast Capital LLC, with a debt of over $145,000. Other significant creditors listed in the filing include LQ Commercial Property Management, Bear Robotics, and Chase Card Member Services. The debtor did not provide a specific reason for the bankruptcy filing in its petition, and a company spokesperson was not immediately available for comment.

The filing occurs against a backdrop of financial strain in the breakfast dining sector in 2026. Competitors such as Denny’s franchisees, Sarabeth’s, and Breakfast Republic have closed locations or filed for bankruptcy protection to cut costs. Additionally, a St. Petersburg-based franchisee of Village Inn filed for Chapter 11 bankruptcy in June 2026 for three Florida locations, citing significant revenue falls over the previous two years.