Olga's Kitchen Files For Bankruptcy

By Edward Cardenas

TROY (CBS Detroit) - Longtime Metro Detroit restaurant chain Olga's Kitchen has filed for bankruptcy.

The company, founded by Olga Loizon 45 years ago in Birmingham, filed for Chapter 11 bankruptcy in Detroit.

"This Chapter 11 filing won't have an impact on Olga's Kitchen operations, our employees or any element of Olga's iconic brand that the metro Detroit community has come to know and love during the last 45 years," Olga's Kitchen Senior VP and COO Michael Kosloski stated in a release. "This is a complicated financial situation on behalf of ownership."

In court documents, the company states that it has between $1 to $10 million in liabilities which is owed to up to 49 creditors. Olga's has between $1-10 million in assets, the filing stated.

Kosloski stated that the company's 28 metro Detroit locations will remain open as the bankruptcy proceedings move through the courts.

He told WWJ's Jason Scott that Olga's will work on "restructuring our debt while we continue to operate our restaurants."

Olga's offers a variety of Mediterranean-inspired salads and sandwiches, soups and sides including snackers.

"We are not going anywhere," said Kosloski.

This report was updated at 3:51 p.m. Friday.