Key Takeaways
- • Yardbird, a Miami-founded Southern fried chicken chain, filed for Chapter 11 bankruptcy on September 22, 2026, listing nearly $25 million in debt across multiple lenders including Brightwood Capital Advisors ($13.3 million), City National Bank of Florida ($8.3 million), and InKind ($3.1 million).
- • The chain's collapse followed aggressive expansion funded by a 2017 private-equity investment from TriSpan Rising Stars, which scaled the company from fewer locations to eight restaurants (seven U.S., one Singapore) before contraction due to pandemic damage and operational challenges.
- • Yardbird has reduced operations to five locations (three company-run, two licensed) after closing restaurants in Denver, Los Angeles, and Miami; the company cites expansion costs and COVID-19 as primary drivers of financial distress.
- • Brightwood Capital Advisors has emerged as the stalking horse bidder through affiliate SH Acquisitions, establishing a minimum price for the asset sale in restructuring proceedings filed in Delaware court.
- • City National Bank initiated litigation against Yardbird in March 2026 for breach of contract, with the case remaining pending as the bankruptcy proceeding advances.
Summary
Yardbird, the Miami-based fried chicken chain that rose to prominence as a private-equity backed growth story, filed for Chapter 11 bankruptcy protection on September 22, 2026, seeking to restructure approximately $25 million in accumulated debt. The company's filing marks a dramatic reversal for what had been positioned as a high-growth concept in a sector experiencing strong consumer demand for fried chicken dining.
The company attributed its financial distress to a combination of aggressive expansion costs, pandemic-related revenue collapse, and location-specific operational challenges. Founded in Miami in 2011, Yardbird attracted significant institutional capital when TriSpan Rising Stars invested in the company in 2017, fueling expansion that scaled the chain to eight locations across the United States and Singapore. However, the pandemic inflicted what company documents characterize as "irrecoverable damage" to the business model, forcing a series of closures. The chain now operates just five locations—three company-owned and two licensed—down from its peak, with shuttered properties in Denver, Los Angeles, and Miami.
Yardbird's debt structure reflects the layered financing approach typical of growth-stage restaurant companies. The company carries a $13.3 million loan originated in 2022 from Brightwood Capital Advisors, an $8.3 million obligation to City National Bank of Florida dating to 2020, and a $3.1 million credit facility with InKind established in 2025. The InKind arrangement represents a non-traditional financing mechanism whereby the capital provider receives dining credits as repayment, a structure increasingly common among restaurant companies facing traditional lending constraints. City National Bank filed a breach-of-contract lawsuit against Yardbird in March 2026; that litigation remains active as the bankruptcy proceeding advances.
In the Chapter 11 process, Brightwood Capital Advisors has positioned itself as the stalking horse bidder through the affiliate entity SH Acquisitions, establishing a baseline valuation for the asset sale. Despite the closure of several flagships, Yardbird stated in its filing that "restaurants currently operating remain open and continue to serve guests" as restructuring efforts proceed. The bankruptcy filing underscores broader fragility within the franchised restaurant sector, where smaller operators and concept chains have faced mounting pressure from debt burdens incurred during expansion phases, compounded by inflationary operating costs that emerged post-pandemic.
The company attributed its financial distress to a combination of aggressive expansion costs, pandemic-related revenue collapse, and location-specific operational challenges. Founded in Miami in 2011, Yardbird attracted significant institutional capital when TriSpan Rising Stars invested in the company in 2017, fueling expansion that scaled the chain to eight locations across the United States and Singapore. However, the pandemic inflicted what company documents characterize as "irrecoverable damage" to the business model, forcing a series of closures. The chain now operates just five locations—three company-owned and two licensed—down from its peak, with shuttered properties in Denver, Los Angeles, and Miami.
Yardbird's debt structure reflects the layered financing approach typical of growth-stage restaurant companies. The company carries a $13.3 million loan originated in 2022 from Brightwood Capital Advisors, an $8.3 million obligation to City National Bank of Florida dating to 2020, and a $3.1 million credit facility with InKind established in 2025. The InKind arrangement represents a non-traditional financing mechanism whereby the capital provider receives dining credits as repayment, a structure increasingly common among restaurant companies facing traditional lending constraints. City National Bank filed a breach-of-contract lawsuit against Yardbird in March 2026; that litigation remains active as the bankruptcy proceeding advances.
In the Chapter 11 process, Brightwood Capital Advisors has positioned itself as the stalking horse bidder through the affiliate entity SH Acquisitions, establishing a baseline valuation for the asset sale. Despite the closure of several flagships, Yardbird stated in its filing that "restaurants currently operating remain open and continue to serve guests" as restructuring efforts proceed. The bankruptcy filing underscores broader fragility within the franchised restaurant sector, where smaller operators and concept chains have faced mounting pressure from debt burdens incurred during expansion phases, compounded by inflationary operating costs that emerged post-pandemic.
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