Bankruptcy Plan Proposes End of Salina Old Chicago Franchise Agreement in April 2027

Newly filed documents in the Chapter 11 bankruptcy case involving Samys OC, LLC outline a proposed timeline that would end the company’s Old Chicago franchise agreement for its Salina restaurant effective April 30, 2027.

The information is contained in a Combined Plan and Disclosure Statement dated and filed Aug. 24, 2026, in the U.S. Bankruptcy Court for the District of Kansas. An amended exhibit updating the proposed treatment of the company’s franchise agreements was filed Aug. 26, 2026.

The plan has not yet been confirmed by the Bankruptcy Court.

Salina Franchise Agreement Proposed to End April 30, 2027

Under the amended filing, Samys OC proposes to reject its franchise agreement with SPB Hospitality LLC/Old Chicago Franchising II, LLC for the Salina location effective April 30, 2027.

The filing does not state that the Salina restaurant will close on that date. It specifically addresses rejection of the Old Chicago franchise agreement. The documents reviewed by Salina311 do not state what would happen with the Salina restaurant after the proposed April 30, 2027, rejection date.

The amended schedule lists the proposed treatment of the company’s Old Chicago franchise agreements as follows:

Lawrence — Reject immediately.

Garden City — Reject immediately, although the amended filing states Samys OC is not the franchisee at that location. According to the document, Samys Enterprises, LLC is and has always been the Garden City franchisee.

Manhattan — Reject effective Nov. 30, 2026.

Salina — Reject effective April 30, 2027.

The original Aug. 24 filing identified Samys OC as currently operating Old Chicago restaurants in Garden City, Manhattan and Salina. It states the company opened its Salina and Lawrence restaurants in 2019. The Liberal restaurant was closed in 2024, and the Lawrence restaurant was closed in 2025.

Salina Property and Reorganization Plan

The bankruptcy documents separately address the real estate at 214 S. Santa Fe Ave. in downtown Salina.

An asset schedule filed Aug. 24 lists the Salina property at a value of $351,700.

The proposed reorganization plan states that a Dream First Bank claim is secured by the Salina property and that Samys OC intends to refinance that claim on or before Nov. 30, 2026.

The bankruptcy plan also lists the City of Salina's STAR Bond agreement among the contracts Samys OC proposes to accept. The filing describes the STAR Bond agreement as current and states that no cure payments are proposed.

Samys OC filed for Chapter 11 bankruptcy protection on Nov. 14, 2024.

The Aug. 24 plan states that the company proposes to pay creditors through a combination of real estate and personal property transactions and cash flow from continuing operations.

The document makes clear that the Bankruptcy Court had not yet confirmed the plan when it was filed.

Financial Results Show Thin Profit Margins

The Aug. 24 filings include a summary of the company's monthly operating reports beginning in November 2024 and continuing through June 2026.

Adding the monthly figures listed in the report for the entire November 2024 through June 2026 period shows $13,974,542 in gross income and $13,918,506 in expenses, resulting in net income of $56,036.

The exhibit's printed total is different. It lists $13,660,205 in gross income, $13,685,204 in expenses and a cumulative net loss of $24,999.

That printed total mathematically corresponds to the figures from December 2024 through June 2026 and does not incorporate the November 2024 figures shown in the table. November 2024 shows $314,337 in gross income, $233,302 in expenses and $81,035 in net income.

Those figures cover Samys OC's overall operations and are not identified in the filing as financial results for the Salina restaurant alone.

For 2025, the company reported $8,912,714 in gross income and $8,860,003 in expenses, resulting in net income of $52,711.

That represents a net margin of approximately 0.59%.

For the first six months of 2026, Samys OC reported $3,879,362 in gross income and $3,850,364 in expenses, resulting in net income of $28,998.

That represents a net margin of approximately 0.75% through June.

During the first six months of 2025, Samys OC reported $4,717,754 in gross income and $107,007 in net income.

Compared with the same period in 2025, gross income through June 2026 was $838,392 lower, a decline of approximately 17.8%.

Net income was $78,009 lower, a decline of approximately 72.9%.

For June 2026, the most recent month included in the filing, Samys OC reported $712,316 in gross income, $659,490 in expenses and net income of $52,826.

The figures are company-wide and should not be interpreted as revenue or profit specifically attributable to the Salina Old Chicago location.

Company Projects Higher Sales but Near-Break-Even Results

The Aug. 24 bankruptcy filing also contains financial projections for the reorganized company through 2031.

The projections are identified in the filing as "projected sales" and should not be interpreted as guaranteed revenue or formal sales goals.

For 2027, Samys OC projects $4,871,630.63 in sales and $4,869,678.14 in expenses, resulting in projected net income of $1,952.49.

For 2028, projected sales increase to $5,115,212.21, with $5,113,663.92 in projected expenses and $1,548.29 in projected net income.

For 2029, the company projects $5,319,820.75 in sales, $5,319,010.97 in expenses and $809.78 in projected net income.

For 2030, projected sales increase to $5,532,613.63. Projected expenses total $5,532,551.22, leaving projected net income of $62.41.

For 2031, Samys OC projects $5,698,592.07 in sales and $5,695,679.24 in expenses, resulting in projected net income of $2,912.83.

Projected sales increase from $4,871,630.63 in 2027 to $5,698,592.07 in 2031, an increase of $826,961.44, or approximately 17%.

Despite those projected sales levels, annual projected net income ranges from $62.41 to $2,912.83.

As with the historical financial information, the projections are for Samys OC and are not presented in the filing as projections specifically for the Salina restaurant.

As of the most recent document provided to Salina311, filed Aug. 26, 2026, the proposed treatment remains rejection of the Salina Old Chicago franchise agreement effective April 30, 2027.

The filing does not say the Salina restaurant will close April 30, 2027, and it does not identify what name, ownership structure or restaurant operation, if any, would occupy the location after the proposed franchise agreement ends.