Florida Based Owner of Italian Restaurants Files for Bankruptcy

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In a turn of events that has left many locals surprised, Star Wellington LLC, the company behind two popular Italian restaurants in Wellington, has filed for Chapter 11 bankruptcy. The company, which owns Franco Italian Bistro and Victor’s Pizza Café, made the filing on August 23rd, citing over $2.4 million in debt against just over $300,000 in assets.

Adam Hopkins, the owner and manager of Star Wellington, submitted the bankruptcy petition in the U.S. District Court for the Southern District of Florida. The filing comes as a bid to restructure several loans tied to the restaurants, allowing the business to hopefully get back on track.

So, what does this mean for the restaurants? For now, the doors at Franco Italian Bistro and Victor’s Pizza Café remain open. Star Wellington is working to reorganize its finances while continuing to serve customers. The company’s list of creditors includes Fund-Ex Solutions Group, which holds a $1.5 million lien on the company’s cash collateral from a loan backed by the U.S. Small Business Association. Other significant creditors are WebBank’s Toast Capital with $652,000, and Limatola Villa with $209,000.

In the bankruptcy documents, Star Wellington requested permission from the court to use its cash collateral to prioritize payments to these three main lenders. The company currently has about $238,000 in cash spread across multiple bank accounts and nearly $77,000 worth of furniture and equipment.

Interestingly, the court approved a Debtor-in-Possession (DIP) order on the same day Star Wellington filed for bankruptcy. This DIP order is a crucial step—it means that Star Wellington can continue running its day-to-day operations and make financial decisions under the court’s watchful eye. It’s a move designed to give the company some breathing room while they work to sort out their financial troubles.

As for the numbers, Star Wellington has managed to generate $2.4 million in revenue so far this year, employing 39 workers. Last year, the company posted $1.9 million in revenue, showing that the business was growing, even as financial pressures mounted.

Despite the bankruptcy, both Franco Italian Bistro and Victor’s Pizza Café are still up and running, and their leases in the Pointe at Wellington Green plaza remain active. It’s a challenging time for the company, but for now, it’s business as usual for these beloved local spots.

While the future is uncertain, Star Wellington’s decision to file for Chapter 11 could be the lifeline the company needs to restructure its debts and emerge stronger. It’s a story that’s still unfolding, and the community will no doubt be watching closely to see what happens next.