The Iron Hill Brewery & Restaurant chain, which closed its Huntingdon Valley (Lower Moreland Township) location and 15 others in late September, has filed for Chapter 7 bankruptcy.

Whereas Chapter 11 bankruptcy allows a company to restructure and continue operations, Chapter 7 involves entities shutting down and liquidating assets to pay creditors.

According to USA Today, the chain announced its bankruptcy decision in an email to employees and estimated assets of $164,581 and liabilities of $20 million, most of which is a $17.3 million lien against property held by BankUnited of Miami Lakes, Florida.

“Due to ongoing financial challenges, the company has made the difficult decision to file for bankruptcy and regrettably will be permanently closing its doors,” the email said.

A potential class action lawsuit may decide whether the company violated the WARN Act. If Iron Hill is found to have violated this rule, eligible workers could receive back pay and benefits for up to 60 days.

From USA Today’s coverage:

At least one law firm is considering a potential class action lawsuit over Iron Hill’s bankruptcy, citing a possible violation of the possible violation of the Worker Adjustment and Retraining Notification Act of 1988, The Delaware News Journal reported. The WARN Act requires most employers with 100 or more employees to notify its workers 60 calendar days ahead of planned closings and mass layoffs.

Pennsylvania Attorney General Dave Sunday is encouraging those with unused gift cards to dispute the purchases with their credit card company or file a complaint with the state Bureau of Consumer Protection.

For all the latest news, follow us on Facebook or sign up for Glenside Local’s “Daily Buzz” newsletter here.