Turkey Leg Hut’s Bankruptcy Case Ends, Closing The Chapter On $6.5M Of Unpaid Debt

The bankruptcy case for Houston’s Turkey Leg Hut has officially ended, leaving more than $6.5 million in debt unpaid, according to the Houston Chronicle.

The outlet notes court records show that the Chapter 7 trustee Ronald J. Sommers, who was overseeing the case, confirmed all accounts are empty, and no assets remain to satisfy creditors. Sommers noted in his report that there were insufficient assets to administer, and all financial records had been submitted to the U.S. Trustee.

“The bank statements reflect a final zero balance, and no other funds or assets of the estate remain in my custody,” he wrote, according to the Houston Chronicle.

Founded in 2015 in Houston’s Third Ward, Turkey Leg Hut became known for its stuffed turkey legs, quickly drawing long lines and celebrity visits, the Houston Chronicle reported in a separate article. The restaurant began in a parking lot near the Houston Livestock Show and Rodeo, founded by Nakia Holmes and her then-husband, Lyndell Price. Over the years, a combination of lawsuits, health code violations, and internal disputes contributed to its closure in 2024.

Turkey Leg Hut initially filed for Chapter 11 bankruptcy in March 2024, citing nearly $5 million in debt, including $1.95 million owed to the Texas Comptroller of Public Accounts and $931,111.12 to former co-owner Steven Rogers, per the Houston Chronicle.

The case was later converted to Chapter 7 after a judge found that Holmes violated the original court order, including failing to file required tax returns. Now, more than $564,000 in assets have been abandoned, and unless objections are filed by creditors within 14 days, the discharge will be permanent, leaving all scheduled claims unpaid.

Throughout the bankruptcy, Holmes largely stayed private, sharing selective updates in an exclusive interview with Essence Magazine in January 2025 and on social media.

As the Houston Chronicle notes, she had stated in an Instagram post that Turkey Leg Hut had “taken steps to reposition and strengthen the company as it continues serving its community,” and expressed determination to achieve a positive outcome. In court, Holmes attributed part of the financial collapse to alleged mismanagement by Price, claims he denied.

The case highlights that businesses experiencing rapid growth may still face legal and operational challenges that can prevent them from paying creditors.