Gourdough’s, an Austin brand known for decadent and creative doughnuts, has filed for Chapter 11 bankruptcy protection, according to court documents.


The company operates the brick-and-mortar Gourdough’s Public House on South Lamar Boulevard and a food trailer on South First Street, both of which remain open.


The bankruptcy filing Monday cites a short-lived expansion in San Antonio and the coronavirus pandemic as factors that led to "substantial debt."


Ryan Palmer and Paula Samford opened their trailer in 2009. Gourdough’s Public House opened in 2012.


"The expansion in San Antonio did not go as anticipated and there are significant debts associated with it that have been magnified by the pandemic," said Kareem Hajjar, partner at Hajjar Peters LLP, the Austin law firm representing Gourdough's in the bankruptcy filings.


"I’m optimistic that restructuring the debt that they have will allow them to continue operating Gourdough’s as we know it," Hajjar said.


Hajjar said Gourdough’s is just one of many Austin restaurants that are struggling through an economic collapse that is threatening their survival.


"The restaurant industry as a whole is getting crushed," he said. "It’s going to be Armageddon. The only reason most are even alive right now is because they received (paycheck protection program) loans."


Gourdough’s menu includes appetizers, salads, sandwiches and entrees, many of which feature doughnuts. Its Ron Burgundy burger boasts Angus beef, applewood smoked bacon, fried egg, American cheese, cilantro, guacamole, sliced tomato and garlic mayonnaise on a doughnut bun.


According to the bankruptcy filing in the Western District of Texas, Gourdough’s LLC, at the South First location, has assets between $100,001 and $500,000 and liabilities between $1 million and $50 million.


Gourdough’s Public House on South Lamar also listed assets between $100,001 and $500,000 and liabilities between $1 million and $50 million.


Gourdough’s Holdings listed assets between $0 and $50,000 and liabilities between $1 million and $10 million.


Gordough’s Riverwalk, which filed for Chapter 7 bankruptcy last month, listed assets between $0 and $50,000 and liabilities between $1 million and $10 million.


Gourdough’s top creditor is Grand Parkway Capital Fund LLC with a debt of $1.42 million, according to court filings. Grand Parkway was Gourdough’s lender for expansion on the San Antonio River Walk in 2019.