ATLANTA — Georgia-based fast food chain Krystal filed a petition Monday for Chapter 11 bankruptcy protection, multiple news outlets are reporting.
According to the Chattanooga Times Free Press, the Southeastern slider chain, founded in Chattanooga, Tennessee, in 1932, announced the news in a statement after the petition was filed in U.S. Bankruptcy Court in Georgia’s Northern District.
"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," read the statement from Krystal Holdings Inc., according to the newspaper.
Court documents said the company, which has been headquartered in Dunwoody, Georgia, near Atlanta, since 2013, has $50 million to $100 million in debts, the Times Free Press and WDEF-TV reported. Company leaders have tapped Jonathan Tibus, of the consulting firm Alvarez and Marshal, to head restructuring efforts, according to the Times Free Press.
Krystal, which employs 6,500 people, has 300-plus restaurants in 10 states, the newspaper reported.
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