Greek Bros. files for bankruptcy; stays open
March 20, 2017 at 10:51 p.m.
Updated March 20, 2017 at 11:05 p.m.
Business will continue as normal at Greek Bros. 205 and at the El Campo location although the parent company filed for Chapter 11 bankruptcy March 9, according to the restaurant's owner.
The owner, George Charkalis, said he had no option except filing for bankruptcy to reorganize internal affairs at his business and pay off his debts.
"205 and Greek Bros. in El Campo will continue on," he said. "We look forward to having all our customers to come and enjoy what we do. We're here to stay. We like Victoria."
Greek Bros. in El Campo opened in 1985, and a Victoria location opened in 2010 and then moved downtown in 2012. Both locations offer live music and food that is a mix of American and Mediterranean.
Charkalis said that a few years ago, he and his wife purchased a piece of property in El Campo and got in over their heads financially.
"We made an unwise real estate purchase, and ... we were unable to keep up with our obligations on that, and we got sued," he said. "At that point, we knew we had to reorganize and change some of our ways of doing business. The only way were able to do that was to reorganize under Chapter 11."
The real estate purchase pulled the company down, and Charkalis said he wasn't able to keep up.
"When the oil field slowed down, some of our volume did the same thing," he said. "The restaurant business is hard, but we're ready to take care of all our debts."
Charkalis plans to keep all his employees, and business will continue as it has, he said.
"We're still hiring. This is business as usual under this protection while we get reorganized," he said.
Charkalis isn't letting the reorganization stop him, and he's looking forward to the future, he said.
"Little did I know I was going to be sharing the same business (strategy) as Trump, Continental Airlines (and) Heinz Ketchup," he said. "They've all gone Chapter 11. I am in good company."
Joseph and Sandra Garcia sued George and Blanche Charkalis in September for $177,273.62, what was left of what the Charkalises owed after the property was foreclosed for $175,000 in June, according to court documents. They also sued for $75,580.61 for breach of warrant title, attorney fees, costs of the suit and interest.
In November, a judge determined that the Charkalises would pay the Garcias $252,854.23 and attorney fees, according to court documents.
In June 2015, a judge determined that the Charkalises would pay Kingsbridge Holdings LLC $32,308.04, according to court documents, after the company sued the couple.
"The reason we're doing it is so we can take care of all our debts," George Charkalis said. "We're not filing not to pay. We're just reorganizing."