The company behind Waverly Restaurant, a legendary diner in New York City’s West Village that serves classic American-style comfort food, has filed for bankruptcy protection, the Wall Street Journal reported. Village Red Restaurant Corp., the diner’s corporate name, filed for chapter 11 protection on Friday in the U.S. Bankruptcy Court in New York. The restaurant is facing potential liability in two lawsuits alleging management didn’t pay overtime to a group of former waiters, dishwashers, busboys and delivery men. Filing chapter 11 bankruptcy halts the litigation and allows Waverly Restaurant to keep its doors open as it attempts to address its liabilities. The restaurant’s bankruptcy petition estimates it has up to $50,000 in assets and between $500,000 and $1 million in liabilities.
