Iconic Cherry Hill Deli The Kibitz Room Files for Chapter 7 Bankruptcy Following Sudden Closure
The Kibitz Room, a longtime staple of the South Jersey dining scene, has filed for federal bankruptcy protection just weeks after abruptly shuttering its doors. The filing, submitted in New Jersey bankruptcy court, indicates a Chapter 7 liquidation, signaling that the beloved Jewish-style deli has no plans to reorganize or reopen.
According to court documents, the business lists liabilities significantly outweighing its assets. The filing reveals that the deli owes hundreds of thousands of dollars to various creditors, including food distributors, utility companies, and the landlord of the strip mall on Evesham Road where it operated. The decision to liquidate comes shortly after the restaurant ceased operations last month, a move that surprised many loyal patrons and left employees suddenly out of work.
For years, The Kibitz Room served as a cultural and culinary anchor in Cherry Hill, filling a void for authentic Jewish deli fare in the region. Famous for its overstuffed corned beef and pastrami sandwiches, matzo ball soup, and pickles, the establishment had cultivated a reputation as a “landmark” destination comparable to historic delis in Philadelphia and New York. Its presence was a nostalgic touchstone for the local community, hosting countless family gatherings and business lunches.
However, the closure underscores the severe economic headwinds facing independent restaurateurs. While the closure has been mourned by the community, industry analysts point to the unsustainable trajectory of operational costs. The price of premium deli meats—specifically brisket and pastrami—has skyrocketed in recent years, squeezing margins to the breaking point. Furthermore, the deli faced stiff competition from fast-casual chains and changing dining habits.
Despite the outpouring of support on social media, there are objections regarding the business’s final days. Some patrons had recently criticized the establishment for escalating menu prices, arguing that the cost of a sandwich had exceeded the value threshold for casual dining. Additionally, the sudden nature of the filing raises questions regarding unredeemed gift cards and the financial impact on local suppliers who are now listed as unsecured creditors in the bankruptcy proceedings. The liquidation process will now move to the sale of any remaining assets to pay off debts, marking the official end of an era for the Cherry Hill institution.
