A Texas restaurant operator behind roughly 30 Denny’s diners in Texas and Florida has filed for bankruptcy protection, raising questions about who will run the locations while the national chain works to find replacement franchisees.
The November 4 filings by EYM Diner companies come after another business associated with the same restaurant group ran into trouble with Panera Bread restaurants around Houston. Denny’s itself has not filed for bankruptcy, and the court cases do not announce the closing of all 30 diners.
Three companies filed Chapter 11 in Texas
EYM Diner of DFW LLC, EYM Diner of Florida LLC and EYM Diner LP each filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth division. Their cases are numbered 26-44986, 26-44987 and 26-44988, respectively, according to the public bankruptcy docket.
Initial estimates for EYM Diner of DFW put its assets below $50,000 and liabilities between $10 million and $50 million. Nation’s Restaurant News identified the Internal Revenue Service as its largest unsecured creditor, listing a claim of nearly $3.5 million for unpaid payroll taxes. The estimates do not establish what creditors will ultimately recover.
On November 6, the court granted the DFW company interim permission to use cash collateral, with another hearing set for November 23. The debtors also requested joint administration of their three cases. Neither step amounts to approval of a restaurant sale or confirmation of a restructuring plan.
Denny’s wants other franchisees to take over
Denny’s said Eduardo Diaz, the operator behind EYM, has been a franchisee since approximately 2012. The chain’s April 2026 franchise disclosure document listed 39 EYM restaurants, but Denny’s counted roughly 30 operating locations when the bankruptcy cases began.
Mark Burgess, Denny’s chief development officer, said the chain has spent about two years helping Diaz pursue restaurant sales. Other established Denny’s franchisees are willing to operate viable locations, he said, and the company is working with creditors to transfer as many restaurants as possible.
That is a goal, not a completed handoff. Denny’s has not announced a final buyer list, how many restaurants will change hands or when transfers might happen. The filings also do not establish a new 30-restaurant shutdown or a verified total of workers losing their jobs.
A familiar problem for the EYM group
The bankruptcy follows a difficult stretch for businesses associated with Diaz. EYM’s Pizza Hut, KFC and Panera operations have faced lawsuits, bankruptcies, sales and closures. In the Houston area, a related Panera franchisee closed multiple cafés after a legal fight with that brand.
Denny’s has also faced pressure on restaurant sales and profitability. The chain was acquired by an investor group in January 2026, but that corporate ownership change is unrelated to the EYM Chapter 11 filings.
For customers, the immediate takeaway is to check their local diner rather than assume a chainwide closure. Individual locations may remain open while the bankruptcy proceedings and possible ownership transfers continue, although their long-term status has not been settled.
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