AUSTIN (Austin Business Journal) — Gourdough’s Public House, a food trailer-turned-restaurant known for extravagant doughnuts, on June 22 filed for Chapter 11 bankruptcy protection.

It’s just the latest restaurant to hit tough times during the COVID-19 pandemic, which has depressed sales across the industry and created uncertainty about when diners will feel safe packing into dining rooms again. But the filings also show that Gourdough’s was hindered by an ambitious San Antonio expansion that never lived up to expectations.

“Covid and other business factors have forced an Austin business that was otherwise thriving to have to restructure its debt and other obligations,” said Kareem Hajjar, partner at Hajjar Peters LLP, the Austin law firm representing Gourdough’s in the bankruptcy filings. “They have some substantial debt and debt service that got to be too much to try to carry due to diminished sales due to Covid.”

You can read the rest of the story at the Austin Business Journal’s website.