K&W Cafeterias has filed for Chapter 11 bankruptcy, and several of the restaurants have been closed as the company goes through a restructuring process.
The Winston-Salem-based company released a statement last week saying that the coronavirus pandemic has taken a toll on its restaurants, known for catering to an older clientele with cafeteria-style dining.
Dax Allred is K&W's president and grandson of the company's founder. He says the chain has made efforts to modernize with online ordering and delivery, but the improvements haven't been enough to stave off bankruptcy.
Allred says K&W did receive funding under the Payroll Protection Program, which allowed the company to keep more than 1,400 workers employed. The News & Observer reports that K&W has filed motions asking to continue operating its cafeterias as usual and fulfill its commitments to staff, stakeholders, and vendors.
Six cafeterias have been closed, including a franchise in Salisbury, but the company will continue to serve customers at its remaining locations across the Carolinas, Virginia, and West Virginia.
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