A well-known fast food brand announced its difficult financial situation, which led it to make a drastic decision.
The Harold’s Chicken chain filed for bankruptcy under Chapter 11 of the United States bankruptcy law. This is a fast food company that specializes in the production of fried chicken. The growing accumulation of debt led her to make this drastic decision.
The company has various debts owed to Bitty Advance and Bridge 33 Capital LLCwhich total approximately $40,000. Chapter 11 of the bankruptcy law in the United States allows companies to declare bankruptcy in order to receive a series of benefits, such as having an extension of time to pay debts and operate normally while their financial situation is resolved.
Harold’s Chicken
What led this famous franchise to face financial problems?
The chain has several offices distributed in different North American states such as Arizona, California, Georgia, Indiana and more. During 2023 it was ranked number 15 out of 100 among the fastest growing fast food franchises by Nation’s Restaurant News.
This company It emerged in 1950 with the idea of being intended for the African-American population.as a response to the lack of attention to this community due to discrimination, given that at that time the chains did not usually open in neighborhoods where there was a majority of that population.
In 2024 he faced major financial problems, and missing assets and tax filings were discovered, making it difficult to distribute his monetary funds to unsecured creditors. This, added to debts of around $40,000, motivated the firm to file for bankruptcy.
What implications does bankruptcy have for your restaurants and employees?
According to a specialized media, Chapter 11 of the bankruptcy law allows companies to obtain a series of benefits such as extensions in the payment of debts and continue operating with normal operations until their financial situation is resolved.
Source: Ambito
