Turkey Leg Hut owner files bankruptcy to 'reposition and strengthen' business

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Wednesday, March 27, 2024
Is a popular Houston restaurant on its last leg?
Turkey Leg Hut owner Nakia Holmes filed for Chapter 11 bankruptcy on Tuesday after court records show millions are owed to creditors.

HOUSTON, Texas (KTRK) -- A Houston staple in Houston's Third Ward is filing for bankruptcy.

Nakia Holmes, owner of the Turkey Leg Hut along Almeda Road, announced she filed for Chapter 11 bankruptcy on Tuesday.

Holmes posted on Instagram that the move was to "reposition and strengthen the company."

"The story of Turkey Leg Hut is not yet written," the post continues. "Our goal is to make you proud."

Court records show the business owes about $4.7 million to creditors, including nearly $2 million in state tax revenue.

The filing shows the business has assets valued at $50,000 or less.

For months, ABC13 has been reporting problems within the restaurant.

RELATED: Turkey Leg Hut sued for nearly $1.3M over outstanding debt

US Foods is suing popular Houston restaurant Turkey Leg Hut for more than $1.2 million. Here's why.

The business was sued last year for an outstanding debt and lawsuit fees amounting to $1,288,583.12.

The lawsuit alleges it all began in September 2020, when US Foods Inc. said it supplied produce, other non-PACA (Perishable Agricultural Commodities Act) foods, and food-related products and services in exchange for Turkey Leg Hut's timely payment of invoices.

In February, our partners at the Houston Chronicle reported Holmes fired her husband and business partner after filing for divorce last year.

And a few weeks ago, the Turkey Leg Hut's business office reportedly caught fire. The incident is being investigated as arson, and investigators are reviewing video and other evidence to determine what caused it.