Madison food ordering company EatStreet filed for bankruptcy to restructure its business and debt load, according to the Wisconsin State Journal, with a hearing on its reorganization plan set for April. The company cited increased competition, several financial uncertainties, and the inability to find a buyer behind its decision.
Founded in 2010, EatStreet’s Oct. 11 filing for Chapter 11 said that issues began in the wake of the COVID-19 pandemic, as it was outspent by bigger competitors like UberEats and DoorDash and affected by the delay and reduction in a federal CARES Act tax credit, which would have helped the company retain employees.
A change in a Google algorithm also reportedly made it more difficult for customers to find the company online, and EatStreet had tax-related disputes with the states of Illinois and Massachusetts.
In its bankruptcy filing, EatStreet says it works with 7,000 restaurants nationwide, has 16 corporate-level employees, and has 80,000 or more regular users on its platform. As of August, the company listed $1,647,135 in total assets and $4,334,336 in liabilities.
