Another Restaurant Files For Bankruptcy: Pending Debt Leads Burger Chain Krystal To Chapter 11

Burger chain Krystal is the latest restaurant company to file for bankruptcy protection. The company filed for Chapter 11 on Sunday, reportedly listing debts between $50 million and $100 million.

The news of the bankruptcy filing comes after Krystal announced a shakeup of its executive team in November. At the time, both Paul Macaluso, president and CEO of Krystal, and Berry Epley, chief financial officer, had left the company. Tim Ward was appointed to the position of president and CEO with Bruce Vermilyea, named chief financial officer.

Krystal also made the decision back in December to refranchise up to 150 restaurants into company-owned stores, Nation’s Restaurant News reported. As of October, the company reportedly had 318 restaurants in the states of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee, of which 116 were franchised locations.

In its bankruptcy filing, Krystal named 30 unsecured creditors, including $4.2 million owed to The Tombras Group media agency, $2.9 million to US Foods Inc., and over $550,000 to Radiant Systems, the news outlet said.

“The actions we are taking are intended to enable Krystal to establish a stronger business for the future and to achieve a restructuring in a fast and efficient manner," the company said in a statement (via Nation’s Restaurant News). "We are pleased to be ready to move toward a brighter future for the brand and have the support of our stakeholders."

Krystal is owned by Argonne Capital Group LLC.