By: Roy Douglas Malonson
The Turkey Leg Hut, founded around 2015 in Houston’s Third Ward at 4830 Almeda Road, rose quickly to local prominence. It began as a pop-up across from the Houston Livestock Show & Rodeo and then opened a brick-and-mortar location. The restaurant gained media attention for its festive atmosphere, long lines, and signature smoked and stuffed turkey legs. It quickly became a cultural landmark in the area, especially popular among celebrities and social media influencers. However, behind the success and popularity, financial and legal troubles were quietly brewing. By early 2024, the business’s struggles had become public knowledge when it filed for bankruptcy protection.
In March 2024, the Turkey Leg Hut filed for Chapter 11 bankruptcy, aiming to restructure and regain financial stability. The filing revealed significant debt—approximately $4.7 million owed to 19 different creditors. Among the largest creditors were the Texas Comptroller of Public Accounts, owed nearly $2 million; the Small Business Administration, owed over $420,000; the Internal Revenue Service, owed $158,000; and the City of Houston, which was owed tens of thousands for water bills. The business also owed over $57,000 to American Express. In stark contrast to its liabilities, Turkey Leg Hut listed its assets at only $50,000 or less. Despite this, the owners expressed optimism, claiming that the filing was meant to help them “reposition and strengthen” the business.
That optimism didn’t last long. A series of health violations and operational issues further weakened the restaurant’s chances of recovery. In September 2024, the Houston Health Department issued 34 violations, including unsafe food storage, improper equipment maintenance, and cleanliness concerns. These health code breaches significantly damaged the restaurant’s reputation and led to a temporary closure. At the same time, lawsuits from vendors and former business partners began piling up. US Foods, a major supplier, sued the business for over $1 million in unpaid invoices, and a former co-owner filed a lawsuit seeking over $900,000. The volume and scale of these legal battles suggested deep-rooted financial mismanagement.
Due to the worsening financial condition and the inability to present a feasible reorganization plan, the court converted the case from Chapter 11 to Chapter 7 bankruptcy in September 2024. This shift signaled that the business would not be restructured, but instead liquidated. In Chapter 7 proceedings, a court- appointed trustee takes over the business’s assets and sells them to pay off creditors. However, in the case of Turkey Leg Hut, there were virtually no significant assets to liquidate. Compounding this, the landlord of the Almeda Road property terminated the restaurant’s lease, effectively ending the business’s operation at its flagship location. This development made it clear that the business had no viable path to recovery.
By October 2025, the final blow came when court documents revealed that there were no assets available for distribution to creditors. More than $6.5 million in claims would be discharged with no payment, meaning creditors would receive nothing. This included unpaid taxes, loans, vendor invoices, and various other debts. The collapse of Turkey Leg Hut serves as a cautionary tale for businesses in the hospitality industry. It underscores the importance of financial discipline, proper tax and vendor management, regulatory compliance, and sustainable growth. Once a beloved hotspot, Turkey Leg Hut ended not with a comeback but with a liquidation and a trail of unpaid obligations.
