Atlanta based Krystal officially filed for Chapter 11 bankruptcy this past week, citing outstanding debts measuring between $50 and $100 million dollars.
What We Know:
- The company Krystal is filing for chapter 11 bankruptcy, which is frequently used by businesses seeking to reorganize in order to pay off its creditors.
- Since opening its first location in Chattanooga, Tennessee in 1932, Krystal has expanded to hundreds of locations across the Southeast, following moving its company headquarters to Atlanta in 2013.
- “Krystal has 182 company owned restaurants and another 116 franchise locations in at least nine states according to a court filing: Georgia, Tennessee, Alabama, Florida, Kentucky, Mississippi, North Carolina, South Carolina and Arkansas.”
- The Chief Restructuring Officer Jonathan Tibus wrote Monday, “Shifting consumer tastes and preferences, growth in labor and commodity costs, increased competition, and unfavorable lease terms, were key reasons for the company’s bankruptcy.”
- According to USAToday, “Krystal, which calls itself the second-oldest quick-service chain in the country, had 4,890 employees as of Sunday’s bankruptcy filing.”
- In a court filing, Krystal said, “They are also actively investigating a security incident that involves one of the payment processing systems that services some of its restaurants.”
Its unclear at this stage how long the bankruptcy process will take, or what will ultimately happen to the company. Stay tuned to BNA and we will keep you updated as more information arises.