Consumers could soon lose more familiar dining destinations as financial troubles push another restaurant group into bankruptcy.
While Landry’s Inc. is stepping in to rescue several established restaurant concepts, the deal does not guarantee every location will survive. Some restaurants have already closed, leaving diners with fewer nearby options as the struggling company works through a complicated financial restructuring.
The situation highlights the uncertainty facing restaurant operators dealing with mounting debt, cash-flow problems, and the costs of keeping locations open.
Landry’s Inc., owner of multiple well-known restaurant chains across the U.S., has won court approval to acquire restaurant assets from the bankrupt hospitality group, giving several established dining concepts another opportunity to continue operating.
Founded in 1980, Landry’s Inc. owns several recognizable names across the dining, hospitality, entertainment, and gaming industries, including Rainforest Cafe, Bubba Gump Shrimp Co., Del Frisco’s Double Eagle Steakhouse, Golden Nugget Hotel & Casino, and Pleasure Pier, among others.
Landry’s Inc. wins approval to acquire restaurants from bankruptcy
Landry’s Inc. is expanding its restaurant portfolio through a more than $22 million bankruptcy auction purchase involving Fireman Hospitality Group.
The court approved the sale on Oct. 22, 2026, to FHG Acquisition LLC, an affiliate of Landry’s Inc. The transaction covers assets associated with nine restaurant locations operated by the bankrupt hospitality group, including several established New York City dining concepts.
The restaurants identified in the approved purchase agreement include Café Fiorello, Trattoria dell’Arte, Bond 45, Café Paradiso, Brooklyn Diner, USA Brooklyn Delicatessen, Paris Bar, and Le Jardin Rooftop. The portfolio includes two Brooklyn Diner locations and two Café Fiorello locations, one in Manhattan and another in Washington, D.C.
The purchase price includes more than $22 million in cash, along with additional cure costs and assumed liabilities. The buyer also received designation rights over certain restaurant leases and contracts, giving it up to 120 days after closing to determine which agreements it would assume.
That distinction is important because the court-approved sale did not automatically transfer every restaurant lease to the buyer. The purchase agreement listed no contracts as assigned at closing, leaving the future of certain locations dependent on subsequent decisions.
FHG Acquisition initially entered the bankruptcy sale process with a $9.5 million stalking-horse bid. After a competitive auction on Oct. 5, the company’s offer increased to about $22 million and was selected as the successful bid.
There were no plans to convert the restaurants into different concepts, although lease negotiations remained underway, Ciao Hospitality Group CEO Jeff Crivello told Nation’s Restaurant News.
Landry’s Inc. rescues several bankrupt restaurants.Feifei Cui-Paoluzzo / Getty Images
Fireman Hospitality Group closes two restaurants amid bankruptcy
Although the bankruptcy sale provides a potential path forward for several restaurant locations, not every establishment has been spared.
Two restaurants associated with Fireman Hospitality Group have closed in the Washington, D.C., area, including:
Café Fiorello: The restaurant at 1001 Pennsylvania Ave. NW in Washington, D.C., closed on October 28, 2026.
Fiorella Italian Kitchen: The restaurant at 152 National Plaza, Oxon Hill, Maryland, closed on October 29, 2026.
The closures leave diners in the Washington, D.C., area with fewer nearby options for familiar Italian dining concepts. While the bankruptcy sale includes assets associated with several established restaurants, the Washington, D.C.-area closures show that the transaction does not guarantee every location will continue operating.
The company’s financial difficulties had already led to other restaurant shutdowns earlier in 2026. According to the bankruptcy case, Fireman Hospitality Group closed Redeye Grill and one USA Brooklyn Delicatessen location in July before filing for Chapter 11 protection.
Fireman Hospitality Group files for Chapter 11 bankruptcy
S.M.F. Group Inc. and 21 affiliated debtors, collectively known as the Fireman Hospitality Group, filed for Chapter 11 bankruptcy protection on Aug. 9, 2026, in the U.S. Bankruptcy Court for the Southern District of New York.
At the time of the filing, the restaurant group operated nine restaurants and employed more than 800 people across its locations and corporate offices.
According to the bankruptcy filing, the company entered the COVID-19 pandemic with substantial debt stemming from construction cost overruns and losses from a restaurant fire. Government-mandated restaurant shutdowns further disrupted its business, particularly as the group relied heavily on customers visiting New York’s theaters, tourist attractions, and office districts.
As the company struggled to recover, it increasingly relied on merchant cash advances to cover its financial obligations. By March 2026, it had more than 30 advances across 11 lenders, with outstanding obligations totaling at least $5.5 million.
The financial pressure intensified when lenders directed payment processors to redirect restaurant revenues toward their claims. By the time the company filed for bankruptcy, at least $5.96 million in credit-card receipts had been withheld, leaving the business with less than $100,000 in available cash.
Here’s some of my previous coverage on more restaurant closures:
Formerly bankrupt buffet chain comes back after 6-year shutdown
Golden Corral closes another restaurant as shutdowns mount
Bonefish Grill closes another restaurant as parent company cuts locations
The company said the lack of access to those funds threatened its ability to pay employees, landlords, vendors, and taxing authorities, making bankruptcy protection necessary to stabilize operations and pursue a restructuring.
The acquisition by Landry’s Inc. and its affiliate offers a potential second life for several established restaurant concepts. However, with lease decisions still pending and multiple locations already closed, the restructuring does not guarantee that every restaurant will remain open.
Related: Bonefish Grill closes another restaurant as parent company cuts locations