The outside seating area of Sambuca restaurant at the Rice Lofts Tuesday, May 28, 2013, in Houston. The operator of the Sambuca chain has gone through some struggles in recent years.
James Nielsen/Houston Chronicle
A longtime Texas restaurant operator with prominent ties to Houston and the Dallas-Fort Worth area is poised to enter a new chapter, thanks to a federal judge and a multimillion-dollar bankruptcy case.
Chief U.S. Bankruptcy Judge Brenda T. Rhoades confirmed Aug. 6 a reorganization plan for KBI 2015 TX LP, a company managed by restaurateur Kim Forsythe with multiple food-and-entertainment-focused businesses in Texas When the reorganization plan goes through, an unaffiliated investor would contribute at least $250,000 for 100 percent of the company’s equity.
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The decision marks another major shrinking of Forsythe’s once sprawling restaurant empire, which includes the Sambuca chain of steak, seafood and dancing concepts. The news also coincides with the abrupt closure of Forsythe’s other company, 909 Events, Inc., formerly known as Sambuca Catering, Inc., according to public records. 909 was the operator of the Crystal Ballroom at the Rice, a wedding venue inside the Rice Hotel. Chron multimedia reporter Macy Meinhardt reported earlier this week that the company had informed customers its lease had been terminated and that it would be seeking bankruptcy protection, leaving their scheduled deposits and wedding dates up in the air.
While KBI, as a company, may emerge still alive after all this, additional companies owned by Forsythe are presently being swallowed up by liquidation, as a bank is accusing them of defaulting on millions of dollars in debt.
Millions in debt
According to court documents, KBI was identified as the operating company behind The Rayleigh Underground and Kitchen 101, both part of Toyota Music Factory, a sprawling entertainment district in the North Texas city of Irving. The Rayleigh Underground is a 38,000-square-foot, two-story entertainment venue that evokes sights, sounds and tastes of Las Vegas, according to its website. Kitchen 101 is an adjoining fast-casual restaurant with wine and coffee.
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Toyota Music Factory, an entertainment complex located in the Las Colinas area of Irving, Texas.
JHVEPhoto/Getty Images
KBI was also financially interconnected with Forsythe’s other operating companies, including Restaurant Expert Management (REM Inc.), Sambuca Houston, and 909 Events Inc. Sambuca Houston, a restaurant with nightly live music in the city’s Downtown section, operated for 22 years before closing in 2024.
In October 2025, KBI filed for Chapter 11 bankruptcy. According to court documents, KBI said it was carrying more than $8 million in secured debt and delinquent property taxes and $29 million in unsecured liabilities. Around $27 million of the latter were “intercompany payables” to Forsythe’s other management companies.
First Commonwealth Bank sued Forsyth and a group of KBI-affiliated guarantors two months later, alleging they had defaulted on roughly $4.7 million in debt.
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In the year following, Forsythe’s various companies filed for bankruptcy protection. Sambuca Houston, SL 7200 LP (the management company behind Sambuca 360, a Sambuca location still in operation in Plano), Sambuca Nashville and REM Inc. filed for Chapter 7 in the months of June and July.
What happens next?
Under KBI’s proposed Chapter 11 reorganization plan, whoever the investor is that pays the $250,000 or more gets 100 percent of the new company. The plan also spells out what happens to the money KBI owes to lenders and each class of them will be treated. Lastly, the plan is designed to keep The Rayleigh Underground and Kitchen 101 at the Toyota Music Factory in operation under KBI.
The Crystal Ballroom, seen here in 2013, is under the ownership of an operator whose business had to go through a reorganization per bankruptcy proceedings.
Dave Rossman/For the Houston Chronicle
With the company’s new 100 percent ownership stake spelled out in the plan, it’s unclear whether Forsythe will remain with KBI in a different role. Forsythe’s attorneys have yet to respond to Chron’s request for more information.
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The Sambuca restaurants in Houston and Nashville have since closed, but Sambuca 360 in Plano appears to still be operating.
As of Tuesday, the court is awaiting KBI’s attorney’s written confirmation order that is due Aug. 13. As of Friday, that order has yet to appear.