Kould Katz's Klose?

One of downtown Austin's best-known eateries could be moving off of Sixth Street. The parent company of Katz's Deli, M&M Katz Inc., filed for Chapter 11 bankruptcy on July 20, according to the Austin Business Journal.

The ABJ broke the story late Thursday afternoon. Katz's Deli is in danger of being evicted, and owes thousands of dollars in taxes, money to vendors, and back wages to former employees.

Deli owner Marc Katz sold the building at 618 W. Sixth St. to the current landlord in 2006 after a previous bankruptcy filing in 2004. He is leasing the location at a cost of $269,000 a year. However, Katz says he is looking at other locations and hinted to ABJ that he may leave downtown, and reiterated his catch phrase to local media asking about the financial troubles today - "Katz's never kloses!"