Manzo Lobster & Oyster Bar hasn’t had it easy since opening in Denver in September 2020. Like much of the food industry, the seafood restaurant has seen a slowdown in traffic as a result of the pandemic and is struggling with staffing shortages, the Denver Post reported. A month after opening, the business was sued by the former tenant in its space. And last week, the restaurant owned by Richard Manzo filed for chapter 11 protection — in large part to stop ongoing litigation. According to the filing, Manzo Lobster & Oyster Bar — technically Seafood Junkie LLC — owes $258,009 to about 20 creditors and has assets worth $57,500. The restaurant said it had gross revenue of $208,354 in 2020. As of the Oct. 14 filing date, the company’s 2021 revenue was $1.1 million. The lawsuit against the restaurant was filed in October 2020 by Marg’s Taco Bistro, which alleged the restaurant failed to pay $30,000 for the transfer of a liquor license after the two entered into an asset purchase agreement in 2019. Four days after the bankruptcy was filed, the case was closed. Manzo Lobster & Oyster Bar filed chapter 11 bankruptcy under the new subchapter V, which was introduced last March and is an abbreviated version of the usual process that’s designed for small businesses.
