North Carolina Breakfast Chain Files for Bankruptcy

A well-known breakfast restaurant chain has filed for Chapter 11 bankruptcy, signaling financial distress within the industry.

Getty Image

Popular Restaurant Faces Financial Turmoil

A well-known breakfast restaurant chain has filed for Chapter 11 bankruptcy, signaling financial distress within the industry. The filing, made by Exton Operating Group Inc., a franchisee of the International House of Pancakes (IHOP), aims to reorganize its business operations. The company, operating under the name TA IHOP, reported assets and liabilities ranging between $100,000 and $500,000 in its petition filed in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania.

North Carolina Locations Shuttered Amidst Struggles

The financial challenges have led to the closure of several IHOP locations in North Carolina:

Boone: The IHOP at 702 Blowing Rock Road closed with no plans to reopen.
Raleigh: The iconic IHOP on Hillsborough Street, a fixture since 1968, has permanently closed.
Gastonia: The IHOP on Cox Road, a community favorite since 1996, has shut its doors for good.

These closures reflect a broader trend affecting the chain, which has seen a reduction in locations nationwide. As of January 2025, IHOP operates 1,698 restaurants across the United States, down from 1,790 mid-year in 2023.

Getty Image

Community Reacts to the Loss of a Breakfast Icon

The closures have elicited strong reactions from local communities, where IHOP has long been a place for family breakfasts, late-night meals, and community gatherings. Residents express nostalgia and disappointment over the loss of these establishments that have been part of their lives for decades.

While the future of IHOP remains uncertain, the company and its franchisees are exploring options to navigate these challenging times. The hope is to stabilize operations and continue serving customers who have made IHOP a part of their daily routines.