A Brentwood, Pa., restaurant ordered to close for ignoring COVID-19 masking requirements has filed for chapter 11 bankruptcy, the Pittsburgh Post-Gazette reported. The Crack’d Egg filed the petition on Friday in U.S. Bankruptcy Court in Pittsburgh, and it will continue to operate while the owners reorganize. The restaurant, owned by Kimberly Waigand, made headlines last month after the Allegheny County Health Department ordered it to close for flouting COVID-19 masking rules. In response, the restaurant filed a federal civil rights lawsuit against the Health Department. The shutdown order and the lawsuit have been stayed while the bankruptcy case proceeds. Attorneys said the restaurant’s financial woes are largely due to a loss in revenue following statewide COVID-19 mitigation rules that reduced maximum restaurant capacity to 25 percent. According to the restaurant’s bankruptcy filing, it owes nearly $445,000 in unsecured debt to its creditors. The largest amount, $350,000, comes from Waigand’s husband, Donald. The money for the investment came from a settlement Waigand received after he was in an accident, Cooney said. The restaurant has been under scrutiny since Allegheny County sought its closure after inspectors repeatedly saw employees without face masks, a health violation under the COVID-19 guidelines.
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