Key facts
- Yardbird filed for Chapter 11 bankruptcy protection on Monday.
- The Miami-based chain has nearly $25 million in debt.
- Yardbird's troubles stem from expansion costs, pandemic impacts, and location-specific challenges.
- The company is seeking a sale of its assets and a restructuring.
- SH Acquisitions, affiliated with Brightwood Capital Advisors, is the stalking horse bidder.
- Brightwood Capital Advisors will provide $5.4 million in debtor-in-possession financing.
Yardbird, a full-service fried chicken chain, filed for Chapter 11 bankruptcy protection on Monday, citing nearly $25 million in debt. The company stated it is seeking to address legacy debt and strengthen its balance sheet, with its currently operating restaurants remaining open.
Founded in Miami in 2011 and known for its Southern fried chicken and bourbon, Yardbird was a James Beard Awards semifinalist for Best New Restaurant in 2012. After receiving private equity funding in 2017, the chain expanded to seven U.S. locations and one in Singapore, but has since closed several restaurants and is now down to five. Three of these are company-operated and two are licensed.
According to bankruptcy documents, the company's financial struggles began with aggressive expansion, which led to significant debt. The COVID-19 pandemic exacerbated these issues, causing what the company described as "irrecoverable damage." While some locations performed well, others faltered, putting pressure on the overall business. This led to the closure of its Denver, Los Angeles, and Miami locations in 2025 and 2026.
Yardbird owes approximately $13.3 million on a 2022 loan from Brightwood Capital Advisors, $8.3 million on a 2020 loan from City National Bank of Florida, and $3.1 million on a 2025 credit agreement with InKind. City National Bank of Florida sued Yardbird for breach of contract in March, a litigation that remains pending.
The company is pursuing a sale of its assets and a restructuring. SH Acquisitions, an entity affiliated with Brightwood Capital Advisors, has been identified as the stalking horse bidder, setting a minimum price for the sale process. Brightwood will also provide Yardbird with $5.4 million in debtor-in-possession financing to support ongoing operations during the bankruptcy proceedings. Competing bids are due by October 27, with an auction scheduled for November 2.