# Marmalade Cafe Files for Chapter 11 Bankruptcy After Closing Calabasas Location

CALABASAS, CA (Sep. 5, 2026) -- Just over a month after shuttering its Calabasas location, Marmalade Cafe, the Southern California diner chain that opened its first restaurant in 1990, has filed for Chapter 11 bankruptcy protection.

The company filed on Wednesday, citing "rent disputes and mounting supplier debts" as the primary factors behind its financial collapse.

A 36-year run ends

Marmalade Cafe opened its original location on Montana Avenue in Santa Monica in 1990 and grew over the years to eight restaurants across Southern California. The chain became a local favorite, known for its breakfast tacos and other signature menu items.

The decline began in 2024, when the original Montana Avenue location closed. The chain continued to shrink, with four restaurants closed in recent years, including two this year alone.

Calabasas restaurant closed in August

The Calabasas location closed on August 1, following the closure of the Santa Monica Boulevard restaurant a month earlier. In its bankruptcy filing, the company attributed those closures to "unsustainable financial losses and a lack of rent relief."

The chain also closed its Original Farmer's Market location in May 2026.

Significant debt, shrinking workforce