San Diego, December 6, 2025
Sala Thai, a popular Thai restaurant in San Diego for 35 years, has filed for Chapter 11 bankruptcy protection. Despite the filing, the family-owned establishment plans to continue serving its customers during the restructuring process. The bankruptcy filing reflects a significant financial gap, with assets valued between $0 and $50,000 and liabilities ranging from $1 million to $10 million. As the restaurant navigates these challenges, it remains a beloved part of the local community.
San Diego’s Sala Thai Restaurant Files for Chapter 11 Bankruptcy
San Diego, CA – Sala Thai, a well-known Thai restaurant operating for 35 years on El Cajon Boulevard, has filed for Chapter 11 bankruptcy protection. The family-owned establishment plans to remain open during the restructuring process.
Details of the Bankruptcy Filing
On December 3, 2025, Svangvitaya L.L.C., the operator behind Sala Thai, filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of California. The filing indicates a significant gap between the restaurant’s assets and liabilities, necessitating a court-supervised restructuring. The estimated assets range from $0 to $50,000, while liabilities are between $1,000,001 and $10 million. The company owes approximately 49 creditors, including the California Department of Tax and Fee Administration and Spartan Capital.
Impact on the San Diego Community
Despite the bankruptcy filing, Sala Thai intends to continue serving its patrons. The restaurant has been a staple in the San Diego community for over three decades, offering a variety of Thai dishes such as Calamari, vegetable soup, Ka Prow, Red Curry, and Pad Woonsen.
Background on Chapter 11 Bankruptcy
Chapter 11 bankruptcy allows businesses to reorganize their debts and operations under court supervision. This process enables companies to continue their operations while restructuring, aiming to return to profitability. For small businesses, Subchapter V of Chapter 11 offers a streamlined process to facilitate quicker and more efficient restructuring.
Recent Restaurant Closures in San Diego
Sala Thai’s bankruptcy filing follows a series of restaurant closures in the San Diego area. In June 2024, Rubio’s Coastal Grill filed for Chapter 11 bankruptcy and closed 48 underperforming California locations, including 13 in San Diego. Additionally, in February 2025, the Little Italy Food Hall and Basta! ceased operations, highlighting the challenges faced by local eateries.
Conclusion
The filing for Chapter 11 bankruptcy by Sala Thai underscores the financial challenges faced by long-standing restaurants in San Diego. While the restaurant continues to serve its community, the outcome of its restructuring process will be pivotal for its future. Local support and an understanding of the entrepreneurial spirit can go a long way in helping businesses like Sala Thai navigate these turbulent times.
Frequently Asked Questions (FAQ)
What is Chapter 11 bankruptcy?
Chapter 11 bankruptcy allows businesses to reorganize their debts and operations under court supervision, enabling them to continue operations while restructuring to return to profitability.
Will Sala Thai remain open during the bankruptcy process?
Yes, Sala Thai plans to remain open while it works through the court-supervised restructuring process.
What is Subchapter V of Chapter 11?
Subchapter V of Chapter 11 offers a streamlined process for small businesses to reorganize their debts and operations, facilitating quicker and more efficient restructuring.
Has Sala Thai been a part of the San Diego community for a long time?
Yes, Sala Thai has been a staple in the San Diego community for over 35 years, offering a variety of Thai dishes.
What other restaurant closures have occurred in San Diego recently?
In June 2024, Rubio’s Coastal Grill filed for Chapter 11 bankruptcy and closed 48 underperforming California locations, including 13 in San Diego. Additionally, in February 2025, the Little Italy Food Hall and Basta! ceased operations.
Key Features of the Article
| Feature | Details |
|---|---|
| Restaurant Name | Sala Thai |
| Location | San Diego, CA |
| Years in Operation | 35 years |
| Bankruptcy Filing Date | December 3, 2025 |
| Estimated Assets | $0 – $50,000 |
| Estimated Liabilities | $1,000,001 – $10 million |
| Number of Creditors | Approximately 49 |
| Notable Creditors | California Department of Tax and Fee Administration, Spartan Capital |
| Menu Highlights | Calamari, vegetable soup, Ka Prow, Red Curry, Pad Woonsen |
| Recent Restaurant Closures in San Diego | Rubio’s Coastal Grill (June 2024), Little Italy Food Hall and Basta! (February 2025) |
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Author: STAFF HERE SAN DIEGO WRITER
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