It is common for celebrities to branch out into areas of business outside of the industry that made them famous. This was the hope for T.I., known to Connecticut fans as an actor and rapper, who opened a restaurant in another state in an attempt to broaden his brand. Unfortunately, the restaurant has fallen on hard times, but thankfully the rapper’s business partner recently filed for Chapter 7 bankruptcy. This will help both entrepreneurs to recoup and move forward effectively.
According to the bankruptcy paperwork, business partner Charles Hughes filed for Chapter 7 bankruptcy on May 1. Hughes and T.I., whose real name is Clifford Harris, each own a 40 percent share in the restaurant, with the remaining 20 percent split four ways between minor partners. Documents list the assets for Scales 925, the restaurant they jointly own, at some $5,000. Liabilities are listed as $0, but there are several lawsuits pending against the company.
Some employees have alleged they were not compensated for services rendered, and in some cases were asked to work for free. The restaurant is also being targeted by the IRS and the Georgia Department of Revenue for taxes owed, though the amount was not clarified in the report. Harris denies involvement in the hiring and/or payment of employees. Scales 925 has been closed since 2016, but the recent filing has ensured its doors stay closed for good.
It can be a helpful lesson for Connecticut business owners that even the wealthiest and most successful entrepreneurs sometimes encounter financial hardship. Seeking the support of an attorney in filing for Chapter 7 bankruptcy can help to recover financial losses without sacrificing a business owner’s personal finances. In filing for bankruptcy, this leaves the future open for that individual or company to move forward with a stronger financial footing.
Source: theblast.com, “T.I.’s Failed Georgia Restaurant Files for Chapter 7 Bankruptcy“, Ryan Naumann, May 9, 2018