Italian eatery Rosti on block following parent's bankruptcy. (Up Front).

Famiglia Toscana Inc., owner of five Rosti restaurants concentrated on L.A.'s West-side and the San Fernando Valley, has filed for Chapter 11 bankruptcy protection.

The company's president, Michael Gordon, is negotiating to sell the chain of Tuscanstyle restaurants famous for its roasted dishes, to Eating Life Inc., owned by the Kemp Family Trust, said bankruptcy attorney Kevin Haah. Barry Kemp, one of the principals in the Kemp Family Trust, is a shareholder in Famiglia Toscana and provided a credit guarantee for the company to secure a nearly $1 million loan from the Bank of America.

Gordon was not available for comment.

In its bankruptcy papers filed Feb. 26, Famiglia Toscana listed $3 million in debts and $1 million in assets. The filing does not include its Toscana restaurant in Brentwood.

In 1999 and 2000, the restaurant company lost money and in late 2000, the Kemp Family Trust loaned it $335,000 for operating capital and to improve the restaurants' profitability.

The restaurants, in Brentwood, Santa Monica, Encino, Los Angeles and Westlake Village, were starting to break even until Sept. 11, according to court documents. Since then, the chain has been operating at a loss and faces a cash flow problem because it can't get an additional line of credit.

In early February, it received several notices from landlords to leave its premises. In addition, there are several lawsuits by Famiglia Toscana's vendors for unpaid invoices, the documents said.