By Town Crier Staff Report

Loren Masters, owner of the Main Street Bar & Grill, filed Chapter 13 bankruptcy in U.S. District Court April 15 as a result of financial problems during the past year.

The restaurant was known as the Los Altos Bar & Grill for years, but the Masters changed the name this year to Main Street Bar & Grill.

The restaurant will remain open until a reorganization is made of the $51,000 in debt.

This is the latest in a series of setbacks for the longtime downtown restaurant. The restaurant’s reputation had been tarnished under previous ownership before Masters instituted a new menu and better service to improve the restaurant’s standing.

She also brought in popular musical acts, such as A Tribute to the Drifters, to draw in additional customers.

Chapter 13 prohibits virtually all creditors from initiating or continuing any effort, legal or otherwise, to collect debts or seize property of the bankrupt estate. It means creditors no longer can demand money, go to court to collect their debt, foreclose or repossess the property.

The restaurant has had numerous owners since it was opened during the 1960s. The original owners, Robert B. and Deborah Clark, filed voluntary bankruptcy under Chapter 11 in May 1995.

In May 1998, the case was converted to a plan under Chapter 7. After all secured claims were settled, the court sold the restaurant assets to the top bidder, Richard Kim.

Wendy and Richard Kim obtained the restaurant in August 1998 from the United States Bankruptcy Court through its trustee.

In November 2000, Masters and Steven Holloway purchased the restaurant from the Kims. Masters admitted she had no previous restaurant experience, having worked in corporate America as a business analyst.

The restaurant has long had the reputation as one of the few night spots in Los Altos. It has attracted a mixture of old-timers and young adults with a combination sports bar and fine dining atmosphere.