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Kraze Burger in Bethesda files for Chapter 11

Thursday - 1/2/2014, 3:19pm  ET

The Bethesda location of Kraze Burger — which was the Korean chain's first-ever spot regionally and nationally — has filed for Chapter 11 bankruptcy protection, according to court documents.

The bankruptcy documents, filed by Kraze Bethesda LLC in the U.S. Bankruptcy Court for the Eastern District of Virginia, list between $100,001 and $500,000 in assets and between $100,001 and $500,000 in liabilities.

A balance sheet from June 30, 2013 included in the filings lists $283,902 in liabilities. The company's address is in Fairfax, but the location of the company's "principle assets" is 4733 Elm St. in Bethesda —the burger restaurant's address.

The creditors are mainly food and utility providers, along with the Montgomery County Property Tax Department. The company owes $2,713.77 in property and sales taxes, according to the filing.

A call to the attorney that filed the bankruptcy documents for Kraze Bethesda LLC was not immediately returned.

It's unclear how, if at all, the Chapter 11 filing will affect the other locations of Kraze Burger. Kraze Burger opened in Bethesda in 2011; subsequent locations in Germantown, Leesburg, Tysons Corner, Westfield Montgomery Mall and Barracks Row have followed. (The Barracks Row location just opened in October.) All five locations, except for the "express" shop in Montgomery Mall, are currently offering a Groupon deal.

Another express location is listed as "coming soon" for Baltimore-Washington International Airport and a full-service Kraze Burger is also planned for NoMa.

© 2014 American City Business Journals, Inc.