Durham restaurant files for bankruptcy after successful crowdfunding campaign

COPA, the Durham restaurant that raised more than $25,000 in a lifeline crowdfunding effort, has filed for bankruptcy.

The restaurant owned by married couple Roberto Copa Matos and Elizabeth Turnbull filed for Chapter 11 bankruptcy May 28 in bankruptcy court for the Middle District of North Carolina. The owners said COPA will remain open as the restaurant goes through the bankruptcy proceedings.

“This was the legal advice from our lawyers; it will prevent foreclosure and allow us to operate the business as normal until we find a fair resolution to the issues with the bank and other creditors....In the short term, we keep our doors open, continue buying supplies and making our food.”

In April, a GoFundMe campaign was started by friends of Matos and Turnbull, initially asking for $16,000 and ultimately raising $27,000. At the time Turnbull said the funds would stave off foreclosure and go towards legal expenses for bankruptcy restructuring, rather than solve the financial woes on their own.

“I wish it could be solved by a one-off moment,” Turnbull said in April. “It’s still messy and complicated, but the goal of this was to buy us some time.”

COPA opened as one of Durham’s most distinctive restaurants, serving a pre-Revolution Cuban menu heavily influenced by Spanish dishes. Many of the dishes were served tapas style and the cocktail menu showcased Caribbean rum.

This was the second restaurant for Matos and Turnbull, who previously owned and operated Old Havana Sandwich Shop.

COPA was one of the top new restaurants when it opened in 2018, earning a four star review from former News & Observer dining critic Greg Cox. In the most recent “Best of Durham” round up from Durham Magazine, COPA was named among the Best Overall restaurants and Matos among the Best Chefs.

Before closing Old Havana, Matos said the couple spent two years searching for a new restaurant space to buy, ultimately buying the COPA space at 107 W. Main Street in Durham.

Buying their restaurant space makes COPA’s bankruptcy scenario somewhat different than many similar proceedings.

Matos said bankruptcy was largely driven by a spike in interest rates on COPA’s loan from the Small Business Administration, as well as a 40% dip in dine-in traffic.

COPA’s debts total slightly more than $2 million, including $1.4 million from the building’s mortgage, a $200,000 SBA loan and $116,000 in credit card debt to Chase.

The restaurant’s assets total $3 million, which is the estimated market value for COPA’s downtown Durham real estate, plus cash and $50,000 worth of restaurant equipment and furnishings.

Through the course of the bankruptcy, Matos expects to have to sell the restaurant’s building to settle debts.

“It’s now a blessing we have an asset we can use,” Matos said. “Likely what the end we will have to sell the asset so we can pay our creditors.”

After that, Matos plans for COPA to go on as a restaurant, either in its current space with a new landlord or moving somewhere else in Durham or the Triangle.

“We’re committed to serve our community and provide a safe and dignified place for our team members to work,” Matos said. “We’ll do the best we can to accomplish that.”

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