East Coast Foods Inc., the parent company of the infamous Roscoe’s House of Chicken and Waffles, filed for bankruptcy Friday after owing a former employee almost $3.2 million for racial discrimination and wrongful termination.

The former employee, Daniel Beasley, filed his lawsuit against the company in 2013. Beasley said he was the victim of racial discrimination and sexual harassment. Shortly after being fired, Beasley lost everything and became homeless. He told the judge that black employees were often treated worse than Hispanic employees within the black owned business. Scott Cummings, Beasley’s lawyer, also revealed that one of Beasley’s former managers said that black workers were lazier.

In October, the restaurant was ordered to pay a total of $3.24 million to cover the jury allotted payment and attorney fees. The bankruptcy petition was signed by Roscoe’s House of Chicken and Waffles founder Herbert Hudson. The lawyers handling the case have not directly stated how this bankruptcy filing will affect the chain restaurants.

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