Turkey Leg Hut owner declares bankruptcy
Turkey Leg Hut owner Nakia Holmes filed for chapter 11 bankruptcy in the Southern District of Texas on Tuesday on the heels of a tumultuous past few months for the business, riddled with controversy and a fire that left extensive damage.
“The company has initiated a voluntary court-supervised process that will allow it the necessary flexibility to continue ongoing discussions with all financial stakeholders,” wrote Holmes in a statement on Instagram. “In connection with the filing, the company has sought approval to continue its operations while meeting its obligations to all stakeholders, employees, suppliers and vendors.”
According to court records, the owner listed 19 creditors with an estimated liability of $1 million to $10 million. Two of the largest accounts include the Texas Comptroller of Public Accounts in the amount of $1.95 million and a disputed amount of $931,111.12 by former co-owner Steven Rogers.
Rogers, now the owner of Bar 5015 in Third Ward, filed a lawsuit against his colleagues in 2020. In his suit, he alleged the restaurant’s majority owner, Nakia Holmes, formerly Price, was diverting “funds, customers and supplies” to her other food trucks and catering businesses without compensating Rogers and other shareholders.
Holmes started the Turkey Leg Hut back in 2015 with then-husband Lyndell Price in a parking lot across the street from the Houston Livestock Show and Rodeo. She later established the brick-and-mortar restaurant at 4830 Almeda. The business has more than 1 million followers combined on Facebook and Instagram.
But, in recent months, it’s been the center of uncertainty. Earlier this month, the Chronicle reported Holmes allegedly fired Price and other employees in an email.
The shake-up prompted Price to set up shop across the street with a business of his own, The Oyster Hut, selling chargrilled oysters.
Ty Anderson, who doesn’t live in the area, stopped by the restaurant to pick up some food Tuesday noting he couldn’t pass up the opportunity since the line didn’t circle the block. Anderson, who wasn’t aware of the bankruptcy, said he wished the couple well in keeping the business afloat. A Missouri native, Anderson has lived in Houston for a decade and has been patronizing The Turkey Leg Hut ever since it opened.
“Everything in there is good,” Anderson said. “I sure hope they make it. I’ll miss this place. This is like the biggest Black establishment I have ever seen— they almost have a whole block out here.”
Price, who was working at the food truck adjacent to the restaurant, declined to comment on the ongoing legal matter. In her post on Instagram, Holmes reassured customers, saying “the story of the Turkey Leg Hut is not yet written.”
“Turkey Leg Hut remains committed to its purpose: serving the Houston community and beyond,” she wrote. “As we go through this process, we ask for continued support. We are determined to achieve a positive outcome.”