Longtime French Quarter seafood favorite Felix's Restaurant and Oyster Bar filed for Chapter 11 bankruptcy protection this week, according to federal court documents. The Iberville Street seafood spot filed for the protection in federal court on Thursday in the Eastern District of Louisiana Bankruptcy Court. The restaurant's owner, John Rotonti, said the popular oyster spot will remain open, and said the business is going through a reorganization.

Chapter 11 allows owners to retain control of a company under court supervision. Filing Chapter 11 allots time for restructing finances, and paying back debts. It normally ends with businesses getting a fresh start. Felix's must enter a reorganization plan within 180 days and provide monthly reports to the court, according to a court order.

According to court documents, Felix's Inc., which owns the restaurant, reported $1.62 million in assets, and $1.57 mllion in debt to more than 45 entities. The debts include back taxes, phone bills, and money owed to seafood businesses, among other items.

The restaurant also currently lacks a liquor license. Rotonti said they are working to get it back.

Felix's is unique among Upper Quarter oyster bars for its compact, neighborhood atmosphere, where oysters are eaten standing up at the bar and shucked directly in front of customers. Originally opened in the early 1900s, Rotonti's family has owned the business for more than 60 years, according to the business' website.

Rotonti acknowledged the bankruptcy as a "reorganization," but declined further comment.

The filing was first reported by Bloomberg News.