MELROSE─Fig & Olive, a Mediterranean restaurant that owns nine locations, has filed for Chapter 11 bankruptcy on Friday, July 3 due to the financial impact of COVID-19 pandemic, and will close some of the locations across the United States.

The restaurant has laid off more than 700 employees after the stay-at-home order was issued in March, and it is reported that 34 employees are currently working for the company at reduced salaries.

Even before the pandemic, Fig & Olive has faced lawsuits related to salmonella outbreaks in 2015. Several customers were sickened with salmonella after eating at Fig & Olive in Washington, D.C., and Melrose Place’s locations. There were approximately 160 people feeling ill at that time due to the infections.

Fig & Olive only has four locations open right now for dine-in service which include the restaurants in New York City, Houston, Washington, D.C., and Orange County.

According to the United States Courts, Chapter 11 bankruptcy provides for reorganization and usually involves a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.

Guillaume Fonkenell, the majority owner of Fig & Olive, will discuss with company managers to decide which locations are likely to be profitable in the near future and can remain open.