Classic Portland Deli Kenny & Zuke’s Is Filing for Bankruptcy

Jewish deli brand Kenny & Zuke’s, which includes a sandwich shop, a bagel bakery, and a counter in the airport, is filing for bankruptcy. According to Willamette Week, owner Ken Gordon made the choice to tackle mounting debts.

Earlier this week, Gordon sent an email to investors announcing plans to reorganize under Chapter 11. Gordon told the alt-weekly that the decision was brought on by a recent civil suit, which claims the restaurant owes $184,494 to a local food distributor. By filing for bankruptcy, Gordon can pay off the restaurant’s debts in full while lowering the overall monthly payments.

Gordon says the restaurant is in no danger of closing, and is, in fact, considering further expansion. Gordon says the restaurant may raise prices on menu items, but the owner does not plan to lay off any employees as a result of the decision.

“There has been some breaking news that we’re going through a Chapter 11 reorganization. This is true. The inference is that we are in trouble and our future bleak. NOTHING could be further from the truth,” Gordon writes in a post on the restaurant’s Facebook page. “The reorganization is due to past debt, and we have a plan to make all our creditors whole, and to give us some breathing room to do what we do best.”

The original restaurant has been open since 2007, when Gordon and then-partner Nick Zukin decided to get into the deli game. Zukin is no longer affiliated with the restaurants.

• Kenny & Zuke’s [Official]
• Kenny & Zuke’s [Facebook]
• Portland Pastrami Staple Kenny & Zuke’s Is Filing For Bankruptcy [Willamette Week]
• Previous Kenny & Zuke’s coverage [EPDX]