On November 14, 2019, the restaurant chain's holding company, HRI Holding Corp., and 38 affiliated companies filed bankruptcy in the United States District Court for the District of Delaware. According to the company's chief restructuring officer, Matthew Manning, the company is struggling due to a shifting labor market, unfavorable leases, and costly third-party delivery services (such as Postmates). The company intends to use the bankruptcy process to conduct an orderly sale of the restaurants. Landry’s, a Houston-based restaurant group that operates Joe’s Crab Shack, Rainforest Cafe, and Morton’s steakhouses, has offered to pay $40 million to keep the company from bankruptcy.
