January 21, 2020
Atlanta-based hamburger chain Krystal has filed for Chapter 11 Bankruptcy. The company reported assets between $10 million and $50 million, and liabilities between $50 million and $100 million.
The fast-food chain operates 182 restaurants across nine states, Georgia, Tennessee, Alabama, Florida, Kentucky, Mississippi, North Carolina, South Carolina and Arkansas. In addition, franchisees currently own and operate 116 Krystal restaurants.
In its filing, the company cited a number of contributing factors to its bankruptcy that included increasing competition, shifting customer tastes and the rise of online delivery platforms. Also cited was the tight labor market, which has made it hard for the chain to find employees.
The company, which is now headquartered in the Atlanta suburb of Dunwoody, was founded in Chattanooga in 1932, and is the oldest quick-service restaurant in the South and the second oldest in the United States. K-Square Restaurant Partners LP acquired The Krystal Co. in 2012.
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