Krystal, the southern fast food chain known for its miniature square burgers served on steamed buns, has filed for bankruptcy.
The money owed is to a variety of vendors, such as equipment and food suppliers, the AP said, whileCNN Businessadds that the company’s assets are worth less than $50 million.
The filing doesn’t mean Krystal is shutting its doors at the moment, though. Despite court records that detail the closing of over 40 restaurants (over one-quarter of that number just last month), “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 Tuesdayin a statement, the AP reports.
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Krystal was founded in Chattanooga, Tennessee, during the Great Depression, just over a decade after Midwestern-founded White Castle, also known for its tiny, square burgers. Krystal is known as the oldest fast-food chain in the South.
Court documents say that the 10 states Krystal’s restaurants are presently in are Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.
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“Krystal is a brand that I have long admired, and I could not be more excited about the opportunity to lead this organization,” Wardsaid in a statement. “I have long felt that Krystal had so much more potential as an iconic, 87-year old brand, and I’m looking forward to making that happen.”
The previous month, Krystalrevealed plans to franchisebetween 100 and 150 of its restaurants in Alabama, Florida, Georgia, Mississippi and Tennessee. Macaluso said of the move in a statement, “We’re ready for the next step in the brand transformation that began when I came on board in 2018.”
The company has pushed various promotions over the past year, including an“All-You-Can-Eat Krystals and Fries” dealfor $5.99 last summer.
source: people.com
