801 restaurant group files chapter 11 bankruptcy as 801 Chophouse chain faces rising costs and Minneapolis closure

801 Restaurant, known for its luxury steakhouses, is in a financial limbo after filing for Chapter 11 bankruptcy on April 10 in a U.S. court in Kansas. The company, who owns 801 Chophouse and is $18.7 million in debt , wants to stay in the business, and is now working trying to restructure in order to work out a sustainable business model.

Filing for 801 chophouse chapter 11, business restructure Chapter 11 means the business can stay open while fixing its finances, instead of closing completely. The company plans to keep serving customers, pay employees, and accept reservations during this process, as cited by Rolling Stone. The court will oversee the restructuring process, and lenders and creditors will soon meet owners to chalk out a plan. The next batch of court proceedings are set to commence in May.

Minneapolis closure adds pressure

At the same time, the company suddenly shut down a restaurant called 801 on Nicollet. This restaurant was located inside the U.S. Bancorp Center in downtown Minneapolis. The closure was sudden, with only a sign saying “extenuating circumstances” and no full explanation.

The shocking part is that this restaurant had opened only in November 2025, so it survived less than 6 months, as per the report by Rolling Stone. Before this, the same location had another concept called 801 Fish. That previous restaurant opened in late 2023 and closed by mid-2025. This means the same spot had two different restaurant failures in under 2 years, showing how tough the area is.

History of the location

Even earlier, the same space was occupied by McCormick and Schmick’s. That restaurant shut down during the COVID-19 pandemic. After that, many businesses in downtown areas started struggling because fewer office workers returned.

Bigger problem in restaurant industry

The company’s problems are not unique — many city restaurants are facing the same issues. Earlier, restaurants depended heavily on office workers for lunch business. Now, because of remote and hybrid work, fewer people go to offices daily. This means lunch crowds have dropped a lot in city centers. Just dinner and weekend customers are not enough to cover high costs of big restaurants.

Restaurants are also dealing with higher food prices (ingredients). Labor costs (staff salaries) have also gone up. Rent in prime city locations is still very expensive. Customers are now more careful with spending and prefer cheaper or quick-service food options, as stated by Rolling Stone. Because of this, luxury dining places are finding it harder to make profits.

What happens next

Though its joint in Minneapolis is shut, it continues to operate its flagship restaurant in Des Moines at 801 Grand Ave, which has been a landmark since 1993. The company also operates in cities like Omaha, Kansas City, St. Louis, Denver, and Washington, D.C.

In Minneapolis, the company is still keeping its 801 Chophouse Minneapolis open. This shows the company wants to focus on strong, proven restaurants instead of new experiments, as noted by Rolling Stone. Chapter 11 gives them time and flexibility to plan properly, instead of making rushed decisions. The company will now work on a final restructuring plan, which must be approved by creditors and the court.

FAQs

Q1. Why did 801 Restaurant Group file for bankruptcy?

801 Restaurant Group filed for Chapter 11 to manage $18.7 million debt and handle rising costs while keeping restaurants open.

Q2. Which 801 restaurant recently closed?

801 on Nicollet in Minneapolis shut down suddenly after operating for less than six months.