26-year-old sushi chain files for Chapter 11 bankruptcy

While the first sushi bars in the U.S. trace as far back as the 1960s and rose to nationwide popularity in the late 1990s, demand for both traditional and not-so-traditional versions of the Japanese dish continues to go strong.The latest industry estimates pin the market for grab-and-go sushi in stores at $2.8 billion and sushi restaurants at more than $17 billion.According to data from analytics firm Strategic Market Research, the global sushi market will grow at a CAGR rate of 7% to more than $24 billion by 2030. But while global chains like Sushiro and Kura Sushi continue to expand and open new locations around the world, not every sushi restaurant or chain ever launched enjoys the same success.Tsunami Sushi files for Chapter 11 bankruptcy, restaurants to stay openLaunched out of Lafayette in Louisiana at the end of 1999, the sushi and specialty roll chain Tsunami Sushi eventually expanded to four locations but has now filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Middle District of Louisiana on March 2.The four restaurants in Lafayette, New Orleans and Baton Rouge are, according to the filing, expected to stay open as the company reorganizes its debts and crafts a financial way forward. The most recent restaurant, a second Tsunami location in Baton Rouge, opened in 2024 while the restaurant in the New Orleans Central Business District opened three years earlier in 2021.Related: 15-year-old steakhouse owned by Michelin chef shuts down foreverThe bankruptcy petition lists debts of between $2.5 million and $3.5 million owed to creditors such as fish and produce vendors and a kitchen equipment maker. The company operating the four locations was purchased by Baton Rouge restaurateurs Chad Hughes, Connie Hargrave and Sarwat Gad as a joint venture in 2021. Tsunami Sushi operates four locations in Louisiana.Tsunami Sushi "Tsunami restaurants are not closing but are merely reorganizing": Tsunami Sushi on bankruptcy"Tsunami restaurants are not closing but are merely reorganizing and will continue serving unique sushi, sashimi and Asian dishes in all four locations without interruption," the company's statement reads. "Customers should expect to continue to receive the same quality of service and meals upon which the restaurants built their brand."Before the case makes it in front of a judge for a decision on the petition, the company owners have 90 days to present a restructuring plan on how they plan to address their debt load.More Food News:This Western city just got its first two-star Michelin restaurantTaco Bell to bring back five favorites after 20 yearsPopular fast-food burger chain to open first store in new marketWalmart makes deal to open popular food chain in storesThe concept was founded at the peak of the North American sushi craze of the early 2000s by Michele Ezell and several members of her family. The bankruptcy case also comes 15 months after current co-owner Hughes filed a lawsuit against partners Gad and Hargrave over the claim that they conspired to push out his share of the business.The bankruptcy petition was filed a day before this case was supposed to go to trial in Baton Rouge on March 3. The restaurant's statement on its reorganization plans does not make any mention of the earlier lawsuit."Tsunami and their team of experts expect to complete their reorganization in the coming months and continue building the Sushi experience across Louisiana and beyond," the statement reads further.Related: Another travel company files for bankruptcy, cancels all trips