The beloved L.A. restaurant chain visited by Kendrick Lamar, Kobe Bryant, Larry King, and President Obama, is facing financial trouble. Roscoe’s Chicken ‘N Waffles declared bankruptcy, claiming millions in debt, partially owed to a former employee’s racial discrimination and sexual harassment lawsuit.
Roscoe’s parent company, East Coast Foods Inc., officially filed for Chapter 11 last week, according to TMZ. The company reportedly cited up to $50 million in debts, with only $50,000 worth of assets.
Even with the filing, Roscoe’s seven Southern California locations aren’t going out of business. The bankruptcy allows the company time to get their finances in order.
Roscoe’s owes former employee, Daniel Beasley $3 million stemming from a 2013 lawsuit. Beasley, a Black man, accused a manager at the popular Pico Blvd. location of discriminated against Black employees. “It’s owned by an African American owner, but he gives full authority to the Hispanics to run it,” said Beasely.
He also accused Roscoe’s of firing him for taking his complaints to human resources.