Federal prosecutors last month charged the company's former chief financial officer with 20 counts of failing to pay federal income taxes, Medicare and Social Security for Soupman's employees.
Al Yeganeh and his 1984 Manhattan soup stand were made famous by a 1995 Seinfeld episode, with the phrase "No soup for you!"
Karson also stated that "the combination of legacy liabilities and recent company developments have made it necessary to seek bankruptcy protection".
The company's story has taken on a Seinfeld twist, though, filing for Chapter 11 bankruptcy, with debts ranging from $10-$50 million, according to USA Today. "This will ensure that our delicious soups remain on grocery shelves throughout the country which is in the best interests of all of our stakeholders and customers", Karson said in the statement.
They say the government lost out on some $600,000 in taxes because Bertrand paid workers $2.85 million in unreported cash and stock awards from 2010 to 2014.
Al Yeganeh outside his business, Soup Kitchen International, in NY in 1997.
A Soupman representative declined to comment on the bankruptcy case. "We anticipate that there will be no disruption in the quality of our product or service that we provide to our vendors and customers during this transition period". The company listed $1 million to $10 million of assets.