L'Auberge, a highly praised French restaurant in Fells Point, has filed for Chapter 11 bankruptcy protection, staving off the Small Business Administration's plans to auction off the business.

Janet Marie Chaubron, co-owner of the business with her husband Georges, said the restaurant at 505 S. Broadway will remain in business and attempt to reorganize. The filing, in the name of the restaurant's parent, Mani Inc., listed assets of $182,670 and liabilities of $134,311.

Ms. Chaubron said the March 20 filing stemmed from the SBA's attempts to collect on a loan made to the company that operated the restaurant preceding L'Auberge at its location. Mr. Chaubron, who had been the chef at the earlier restaurant, which also filed for bankruptcy, was personal guarantor on the SBA loan.

According to Ms. Chaubron, problems arose because business at L'Auberge has slowed during the recession.

"The restaurant's making money. It just isn't making enough," she said.

She added that she did not even know about the SBA's plans until she read a notice in The Sun a week and a half ago saying the restaurant would go on the auction block. The auction, which had been set for yesterday, was deterred by the Chapter 11 filing.

vTC