Two popular concepts in Old Town Scottsdale have filed for Chapter 11 bankruptcy.

Cowboy Ciao and Kazimierz World Wine Bar, both owned by Spaghetti Western Productions LLC, filed for bankruptcy on Monday, July 3.

According to Peter Kasperski, founder of Cowboy Ciao, the filings were due to penalty payments from a previous bankruptcy filing. Neither of the concepts will close.

The filing comes on the heels of another Chapter 11 bankruptcy filing from the Ahwatukee location of Los Dos Molinos. A number of national restaurant chains have been filing for bankruptcy as of late as well, such as Joe’s Crab Shack and Lone Star.

According to Craig Ganz, a bankruptcy attorney in Phoenix for Ballard Spahr LLP, said we’ll likely continue to see more restaurant bankruptcies.

"I do believe you will see more restaurant bankruptcies. And not because the industry as a whole is failing – but rather it’s evolving and competition has only intensified for the same or smaller amount of potential customers,” he said. “Across the board all restaurants are feeling the impact of an increased percentage associated with labor and food costs (factored as cost of goods sold, or "COGS") and these issues are compressing the already slim margins this industry typically operates under. "

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