LOS ANGELES — The decor was simple and the ambiance was trendy, but what was once in with the in-crowd is now down and out near Beverly Hills: Kathy Gallagher Bar Restaurant, a formerly favored spot by many in the entertainment industry, has closed its doors and filed for bankruptcy law protection.
K. M. Gallagher's Inc., which was doing business as Kathy Gallagher Bar Restaurant, filed March 9 for protection from its creditors under Chapter 7 of the U.S. Bankruptcy Code. Under that provision, the assets of the business are liquidated and distributed to creditors under court direction.
Kathy Gallagher closed in early December after owner Kathy Gallagher was unable to renew the lease on the restaurant at 8722 W. 3rd St. and could not sell the business, said Andrew J. Fodo, Gallagher's lawyer. The business had assets of $85,500 and liabilities of $210,164 as of Feb. 25, according to the bankruptcy filing.
"When she had no lease, she had no choice but to close the restaurant," Fodo said. "She would have loved to stay."