Small businesses are often what forms the core of the community, whether that community is a small town or Beverly Hills, and bankruptcy has hit such businesses hard in the last few years.

Across the country, small businesses have strained to stay afloat under a struggling economy. And when a business must file for bankruptcy protection, often a piece of the community goes with them. Such is the case with a survey of businesses that have recently filed for bankruptcy.

In Perry, Iowa, for example, a town of under 8,000 people, a local institution that touched the lives of countless members of the community has filed for Chapter 7 bankruptcy protection.

The Perry Tea Room saw many a Mother’s Day celebration and gatherings of generations of women enjoy the fine service and the sense of tradition. The article in the Des Moines Register reporting the bankruptcy called the Perry Tea Room, a “cultural touchstone.”

“A lot of daughters and a lot of grandparents went through that place,” said Brian Witherwax, the bankruptcy attorney for local owners Vicky and Dwight Taylor. “It was extremely tough for them to make the decision. But unfortunately, the economy doesn’t discriminate even for a local treasure like the Perry Tea Room.”

Bankruptcy records show that the owners of the tea room have over $200,000 in assets against around $870,000 in liabilities. A large portion of those liabilities include a mortgage of just over $650,000.

The Taylors had made efforts to save the floundering business, as records show a recent loan from Dwight Taylor and his handwriting analysis and drug training business. Dwight is also a detective in nearby Urbandale, Iowa.

The tea room boasted a decorative dining room and a well-liked gift shop, and was popular on Mother’s Day and other holidays. The town of Perry has lost a landmark, as bankruptcy claims not only big companies that make the headlines, but small businesses that carry the torch of collective history for town like Perry.

In Knoxville, Tennessee an attempt to revive a dining institution recently fell by the wayside, as the S&W Grand Restaurant has closed its doors and filed for Chapter 7 bankruptcy protection.

The restaurant was a revival of the S&W Cafeteria, which had a rich history in Knoxville before it closed in the early 1980s. The cafeteria had been open since the 1930s, one of a chain of restaurants started by former WWI mess sergeants that spread across the South.

The S&W Cafeteria became, in its newer version, the S&W Grand Cafe, fathering some excitement for its historic roots and the beautiful art deco building location.

Alas, the 2009 opening was short-lived, as legal problems and lease disputes are among the factors that caused the restaurant to file for Chapter 7 protection, according to the Knoxville News Sentinel.

The company recorded just over $1 million in assets, but $5.8 million in liabilities. A large portion of those liabilities come in the form of a $5 million personal injury lawsuit that is outstanding.

Business also got worse as rent and overhead drove the restaurant out of business. Creditors listed include SunTrust Bank, and the city of Knoxville itself, which claims $82,000 in taxes, according to the Sentinel.

In this case, an attempt to revive a city institution came up short, and the S&W will have to wait another day to relive its glory days as an iconic local joint.

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