A Southern California diner once known for celebrity sightings involving the Kardashians, Britney Spears and other stars has sought bankruptcy protection after 36 years in business.
Marmalade Cafe, a longtime Los Angeles County favorite, filed for Subchapter V Chapter 11 bankruptcy on September 2. Rising supplier debts, rent disputes and continuing financial losses have forced the California-inspired chain to significantly reduce its number of restaurants.
The cafe became especially associated with celebrity-rich Calabasas, where members of the Kardashian family were regularly seen dining at its location in The Commons.
Kourtney Kardashian was photographed having lunch there with her children in 2013 and returned the following year to celebrate her 35th birthday.
Kris Jenner was also photographed at the restaurant, while Britney Spears was pictured collecting lunch and coffee from the Calabasas location.
After operating for nearly three decades, the Calabasas restaurant closed on August 1. The shutdown followed the closure of another Marmalade Cafe in Santa Monica just one month earlier.
The chain now faces an uncertain future as it attempts to navigate its financial difficulties.
The company’s Encino-based owner filed the petition in the U.S. Bankruptcy Court for the Central District of California. Court documents list Marmalade Cafe’s assets and liabilities as each ranging between $1 million and $10 million.
Marmalade Cafe, a longtime neighborhood favorite in Los Angeles County, filed for Chapter 11 bankruptcy on September 2
For loyal patrons, the closures mark a major shift for a restaurant brand that was once a familiar presence throughout Southern California.
Marmalade Cafe opened its first location on Santa Monica’s Montana Avenue in 1990 and eventually expanded to eight restaurants.
Four locations have since closed, leaving restaurants still operating in Malibu, El Segundo, Sherman Oaks and Westlake Village.
The company said in its bankruptcy filing that it had been suffering from ‘unsustainable financial losses and a lack of rent relief’ at some of its locations. It also cited rent disputes and mounting debts to suppliers and vendors.
Among its largest unsecured creditors are Gilmore Farmers Market, which the company owes more than $481,000, US Foods, owed more than $394,000, and the California Department of Tax and Fee Administration, owed more than $349,000.
It also owes Sunrise Produce more than $293,000 and Sysco Ventura more than $239,000. The bankruptcy filing lists between 50 and 99 creditors, with more than $2.4 million in unsecured debt identified among 20 named creditors.
A balance sheet included in the filing puts the company’s total assets at about $12.7 million, while its net income was negative $680,314.
Marmalade Cafe’s financial troubles have also taken a heavy toll on its workforce. The company said it once employed more than 200 people but began downsizing in 2024, leaving approximately 50 employees by the middle of this year.
The chain’s menu includes breakfast dishes, burgers, sandwiches, tacos, salads, soups and pastas, alongside more traditional comfort-food dishes such as turkey meatloaf, chicken pot pie and beef pot roast
It has since lost four restaurants, leaving just four still operating in Malibu, El Segundo, Sherman Oaks (pictured) and Westlake Village
The latest closures have happened at a rapid pace. The chain’s original Montana Avenue restaurant closed in May 2024, ending more than three decades at the location where the brand began.
Its Original Farmers Market restaurant in Los Angeles followed in May 2026.
The Santa Monica Boulevard location closed in July, with the company having previously sought someone to take over its lease, which cost around $18,000 a month.
Then, on August 1, the Calabasas restaurant closed after 28 years serving the community. In a message to customers, Marmalade Cafe said it was ‘deeply grateful’ for the friendships and memories created at the restaurant and directed customers toward its remaining locations.
The chain’s history stretches back to an era when neighborhood cafes were a major part of Southern California dining culture.
From its original Santa Monica restaurant, Marmalade Cafe expanded into a casual, full-service concept offering a broad menu designed to appeal to customers throughout the day.
But the restaurant’s long history has not insulated it from the financial pressures hitting the wider dining industry.
Restaurants have been dealing with higher labor, food and occupancy costs, while customers have also become more price-conscious.
Marmalade Cafe’s bankruptcy comes amid a difficult year for restaurants, with a number of chains shrinking their footprints, seeking bankruptcy protection or closing altogether.
New York-based Fireman Hospitality, whose portfolio includes Café Fiorello, filed for Chapter 11 in August, citing financial difficulties and debt obligations.
Salad and Go also filed for bankruptcy in August and closed its remaining locations, while other chains have been cutting their footprints across the country.
The California-inspired cafe became particularly well known in celebrity-heavy Calabasas, where Kardashian family members were among the stars spotted dining at its restaurant at The Commons
On August 1 the Calabasas restaurant (pictured) closed after 28 years serving the community. In a message to customers, Marmalade Cafe said it was ‘deeply grateful’ for the friendships and memories created at the restaurant and directed customers toward its remaining locations
California has seen its own wave of restaurant closures. Carl’s Jr. closed dozens of Southern California locations earlier this year, while a Red Lobster restaurant in Palm Desert shut after 14 years.
Marmalade Cafe’s Chapter 11 filing does not necessarily mean the remaining four restaurants will close.
Chapter 11 allows a business to continue operating while it attempts to reorganize its finances, restructure debts and reach agreements with creditors.
That means customers in Malibu, El Segundo, Sherman Oaks and Westlake Village may still be able to visit their local Marmalade Cafe while the bankruptcy case plays out.
The news has prompted a mixed reaction online, with some former customers expressing nostalgia for the chain while others have been far less complimentary.
One Reddit user summed up the divide by writing that the restaurant was ‘a shell of its former self’ after the pandemic.
Another complained that its prices had become too high, writing that the food was ‘overpriced.’
Others said they would miss it. One Sherman Oaks customer praised the restaurant’s pot roast, Italian salad, mushroom soup and egg dishes and said they hoped the chain would reorganize and stay open.
‘I love the variety of the menu and can always find something I’m craving,’ another Reddit user wrote.
One commenter recalled going to the Sherman Oaks location for happy hour after work, while another said they had enjoyed the restaurant with their mother before she died.
For now, the fate of the remaining four restaurants remains uncertain. After 36 years in Southern California, the chain is hoping its next chapter will not be its last.
