September 15, 2009


Seldom Blues files for bankruptcy

By JOHN GALLAGHER
FREE PRESS BUSINESS WRITER Two of Detroit’s most prominent downtown restaurants, Seldom Blues and the Detroit Breakfast House & Cafe, have filed for Chapter 11 bankruptcy reorganization.

Both restaurants remain open for business today. Under federal bankruptcy law, a Chapter 11 filing allows companies to continue to operate while reorganizing its debts.

Two partnerships that own the restaurants filed the bankruptcy petitions on Friday. Seldom Blues LLC, which owns the popular restaurant located in the Renaissance Center, listed as its top creditors Northern Lakes Seafood & Meats, which it owed $274,098.60; Marx-Layne, a public relations firm, which it owed $35,767.21; and Sysco Food Service, which it owed $30,946.54.

Detroit Breakfast House & Grill LLC, which operates a popular breakfast-themed restaurant on Woodward Avenue, listed among its main creditor the Detroit Economic Growth Corp., which it owed $200,000, and the City of Detroit, which it owed $90,000.

Frank Taylor, the chief owner and operator of the restaurants as head of the Southern Hospitality Restaurant Group, issued a statement about the bankruptcies through his spokesman Michael Layne of the Marx Layne public relations firm in Farmington Hills.

“Both restaurants will continue to forge ahead and stay open,” Taylor’s statement read. “Seldom Blues and Detroit’s Breakfast House will continue to offer wonderful food, service, and atmosphere. Management will continue to run the day to day business operations. The filing was the only option in light of the current economic situation in Detroit and nationwide.”

Seldom Blues opened in the Renaissance Center in June 2004 just as General Motors was completing its $500-million renovations of the Ren Cen as its world headquarters. GM’s presence seemed to guarantee a strong lunch and weeknight dinner business for Seldom Blues, which operates in a 15,000-square-foot space overlooking the Detroit River with a seating capacity of 300.

But the collapse of the auto industry over the past couple of years and GM’s bankruptcy filing led to severe cuts in the number of people working at the Ren Cen, cutting deeply into the restaurant’s business. The poor economy also hurt traffic at the Detroit’s Breakfast House.

In his statement, Taylor said he continues to believe in the viability of both restaurants and predicted both will regain profitability through the Chapter 11 process.
“Frank Taylor greatly appreciates the support that patrons have shown his restaurants over the past five and a half years and greatly appreciates their support going forward as we all make it through this economic downtown,” Taylor’s statement read. “He is proud to provide an enhanced dining experience and remains committed to offering wonderful dining in downtown Detroit.”
Contact JOHN GALLAGHER: 313-222-5173 or gallagher@freepress.com.




We all saw this coming.