Did This Iconic Breakfast Chain In Illinois And Iowa Really File For Bankruptcy? Here’s What’s Going On

Sad day for breakfast lovers.

For any of us suburban kids, it was the pre-prom destination, the post-theatre production hangout...IHOP. The International House of Pancakes. It is one of the places that founded my deep love for breakfast food.

Now, the rumor mill has started. Did IHOP file for Chapter 11 bankruptcy?

But Why?

Look at the last few years. We had that small issue known as a global pandemic in 2020, inflation then came along, and all of that means that people aren't eating out as much. It's taken a toll on the casual dining industry as a whole, breakfast to dinner.

IHOP has 11 locations in Iowa:

• Algona
• Ankeny
• Cedar Falls
• Cedar Rapids
• Coralville
• Council Bluffs
• Des Moines
• Sioux City
• Urbandale
• Waukee
• West Des Moines

Meanwhile, they have 44 locations in Illinois (5 of those are in Chicago).

Is It True?

Partially. A franchisee that had 49 locations (mainly in the southeast) filed for bankruptcy. IHOP has closed plenty of restaurants lately though. In 2020, they closed 100 locations. By July 2024, they had closed 9 locations within the year.

IHOP is hardly the first chain to struggle lately. Red Lobster did in May 2024 and TGI Friday's did back in November. For IHOP, As of January 2025, IHOP operates 1,698 restaurants across the United States, down from 1,790 mid-year in 2023.

IHOP's fellow breakfast chain Denny's said they're closing several locations by the end of this year.

There's no word on any possible closures for the Iowa and Illinois restaurants right now. So plenty of time to gorge yourself on pancakes.