Hoffbrau Closes, Files Chapter 11

Hoffbrau Steaks closed on June 20 for renovation and reorganization, said Margaret Charboneau, the manager.

Two days later, Hoffbrau Steaks of Arkansas Inc. filed for Chapter 11 bankruptcy protection. The petition didn’t list an amount for debts and assets. That’s due in U.S. Bankruptcy Court in Fayetteville by July 7. A meeting of creditors has been scheduled for 10 a.m. July 19 in room 416 of the Federal Courthouse in Fayetteville. Chapter 11 allows a company to remain in business during reorganization.

Margaret Charboneau said she plans to reopen the 21-year-old Fayetteville restaurant in about two months, just before students return for the fall semester at the University of Arkansas.

“We’d like to get some floors put down and do some work in the bathroom,” she said.

The restaurant is owned by Hilda “Sunny” Charboneau, Margaret’s mother, and Matt Charboneau, Margaret’s brother. A third owner, Leo Charboneau, Margaret’s father, died suddenly of a heart attack in April.

Margaret Charboneau said liquor sales were down 30 percent to 50 percent since Fayetteville’s smoking ban on restaurants went into effect on March 11, but food sales at Hoffbrau had remained steady.