Turkey Leg Hut’s $6.5M Bankruptcy Case Closed, No Payment to Creditors
After nearly two years of court filings, debt negotiations, and silence from its owner, Houston’s famed Turkey Leg Hut has finally reached the end of its long-running bankruptcy case — even as new legal challenges arise.
Court records show that the trustee overseeing the restaurant’s Chapter 7 bankruptcy filed to be released from his duties last week, effectively closing the case. In his report, trustee Ronald J. Sommers confirmed that more than $6.5 million in claims against the business would be discharged without payment. He noted that after reviewing Turkey Leg Hut’s finances, there were no assets to sell or distribute, and all accounts had been zeroed out.
“The bank statements reflect a final zero balance, and no other funds or assets of the estate remain in my custody,” Sommers wrote, officially declaring the case closed unless an objection is filed within 14 days.
The bankruptcy’s conclusion marks the end of a 19-month process that began in March 2024, when owner Nakia Holmes filed for Chapter 11 protection before it was converted to a liquidation case. At the time, Holmes said the filing was meant to help the business “restructure and stabilize” while continuing operations.
Documents showed that Holmes owed nearly $5 million to creditors, including $1.95 million to the Texas Comptroller’s office and a disputed $931,000 to former co-owner Steven Rogers, who owns Bar 5015.
In a statement shared to Instagram shortly after the filing, Holmes told followers, “The company has initiated a voluntary court-supervised process that will allow it the necessary flexibility to continue ongoing discussions with all financial stakeholders.” She added that Turkey Leg Hut remained committed to its employees, suppliers, and the community.
Throughout much of the bankruptcy process, Holmes avoided public comment, speaking only once in an interview with Essence Magazine. On social media, she maintained that she was “determined to achieve a positive outcome,” adding that “the story of Turkey Leg Hut is not yet written.”
However, court transcripts revealed Holmes blamed her estranged husband, Price, for mismanaging the business’s finances, saying his “carelessness” contributed to the restaurant’s downfall — a claim he has publicly denied.
“The fact of the matter is that it was not in his name and because it wasn’t in his name, there was just carelessness,” Holmes said during a Zoom court appearance. “There was a callousness and carelessness that he just didn’t care.”
Despite the financial turmoil, the Turkey Leg Hut brand remains active. The restaurant continues to draw crowds, and its food truck has appeared at events across Texas.
But the bankruptcy’s resolution comes as Holmes faces new trouble. On the same day the trustee filed to close the case, Holmes appeared in Harris County criminal court, charged with hindering apprehension or prosecution of a known felon after allegedly interfering in the arrest of a man accused of aggravated kidnapping.
It’s a dramatic turn for the woman once hailed as one of Houston’s most successful restaurateurs. With the bankruptcy now closed and her legal battles ahead, Holmes’ next chapter remain uncertain.
Turkey Leg Hut’s $6.5M Bankruptcy Case Closed, No Payment to Creditors was originally published on theboxhouston.com
