Nearly two years after filing for bankruptcy, Houston’s Turkey Leg Hut case has officially closed—with no payments made toward the millions of dollars in debt owed.
According to court records filed last week, and obtained by The Houston Chronicle, the trustee overseeing the case requested discharge from all further duties and noted that more than $6.5 million in scheduled claims will be “discharged without payment.”
The filing confirmed that after a thorough review of assets, there was nothing left to distribute to creditors. The trustee’s report showed just $442 collected during the process, with all funds returned, bank accounts zeroed out, and no property left under the estate.
“The bank statements reflect a final zero balance, and no other funds or assets of the estate remain in my custody,” trustee Ronald J. Sommers wrote in the final notice. He also listed more than $564,000 in abandoned assets.
Unless objections are filed within 14 days, the discharge will stand, leaving creditors—including government entities and former business partners—without repayment.
The bankruptcy process has been ongoing since March 2024, when Turkey Leg Hut’s debts were first detailed in a Chapter 11 filing. At that time, court documents showed nearly $5 million owed to 19 different creditors, including $1.95 million to the Texas Comptroller of Public Accounts and more than $931,000 in a disputed claim from Steven Rogers, a former co-owner of the restaurant who also operates nearby Bar 5015.
What began as a Chapter 11 reorganization quickly shifted to a Chapter 7 liquidation after a judge cited violations of Holmes’ original court order, including failure to file tax returns. With the conversion, the business lost its chance to restructure and was left to liquidation.
The timing of the final bankruptcy notice comes just as co-founder Nakia Holmes is facing separate legal issues. On the same day the trustee’s report was filed, Holmes appeared in criminal court on a felony charge of hindering apprehension. She was arrested last week for allegedly helping a man wanted on aggravated kidnapping charges avoid arrest.
The bankruptcy closure marks the end of the Turkey Leg Hut’s financial chapter, but it also highlights the broader fall of a brand that once defined Houston dining culture. Founded in 2015 by Holmes and her then-husband Lyndell “Lynn” Price, the business grew from a rodeo pop-up to a nationally recognized restaurant.
Its stuffed turkey legs and lively atmosphere drew celebrities like Kevin Hart, James Harden, Megan Thee Stallion, and Snoop Dogg, and at its peak, the Third Ward location served thousands of customers daily.
But as its profile rose, so did the problems. Neighbors sued over smoke and noise, vendors and partners claimed unpaid debts, and the business was hit with lawsuits totaling millions.
The restaurant drew backlash in 2021 for its controversial dress code, while ongoing disputes between Holmes and Price over financial management and personal issues played out in court and in public. In 2024, the Houston Health Department shut down the location after citing 35 violations, and bankruptcy followed soon after.
Turkey Leg Hut officially closed in late 2024, and its sign was painted over at the Almeda Road location.