The Roscoe’s Chicken Empire Is Crumbling Due To Debt, Racism & Copyright Lawsuits

Everyone knows Roscoe’s House of Chicken ‘n Waffles is the legendary spot for southern comfort food in So Cal., but that could change now that East Coast Foods Inc., the parent company of the popular soul-food eatery, has filed for Chapter 11 bankruptcy protection.

This move will only begin to assist Roscoe’s in bailing itself out of debt stemming from a list of crushing lawsuits and other financial fuckery, like, $16 million in unreported taxes the company is facing. The U.S. Bankruptcy Court in California estimated the company could owe creditors anywhere between $10 million to $50 million. However, the company’s assets total less than $100,000, the Los Angeles Times reported Tuesday.

A photo posted by Moist (@yeezycome_yeezygo) on Mar 25, 2016 at 12:06pm PDT

Legal troubles have plagued the famous Southern California chain for a couple years now, most recently when the company lost a workplace discrimination and wrongful termination lawsuit filed by a former employee, Daniel Beasley.

Beasley, who is African-American, sued Roscoe’s in 2015 for what he told KTLA was, “preferential treatment to Latino employees,” by an all-Latino staff. Beasley was awarded $1.6 million.

The problems didn’t end there, in 2011, Roscoe’s was sued for copyright infringement by the Music Publisher’s Association of The United States. Apparently, The Roscoe’s LBC location has a side lounge where live musicians perform, however, a license is required to play specific copyrighted songs. Roscoe’s failed to pay any licensing fees.  The court awarded the plaintiff, Range Road Music Inc., more than $160,000.

Screen Shot 2016-03-29 at 1.38.06 PM

Could Roscoe’s be on the verge of losing everything? The restaurant’s constantly  packed locations will help distract patrons from the company’s growing internal dilemmas.

One thing is for sure, chicken and waffles are delicious, but Chapter 11 could devour Roscoe’s quicker than you can finish a Carol C. special.

More content

Eating Out
El Pollo Loco Hops In The Chicken Tender Chat With ‘Loco Tenders’
El Pollo Loco is putting its spin on chicken tenders with the launch of Loco Tenders, hitting menus nationwide April 23. The brand previewed the…
,
CultureEating Out
Denny’s Launches Masters Of The Universe Collab With Themed Menu
Denny’s taps into true Gen-X nostalgia (mine included) with its Masters of the Universe Menu. In partnership with Mattel and Amazon MGM Studios, the diner…
,
CultureEating In
Perdue Turns ‘Six Seven’ Into Chicken Nuggets
Trends usually “jump the shark” when brands start to use them. So, I wonder how Gen Alpha will feel about Perdue taking its beloved “SIX…
,
Burger
We Deliver!

Enter your email address below and we'll deliver our top stories straight to your inbox