Memphis has many burger restaurants, but the number soon may drop. Krystal has filed for Chapter 11 bankruptcy protection.
According to a report by Nation’s Restaurant News, Krystal made the filing in a Georgia court Sunday. It cited debts of between $50 and $100 million.
Krystal has units in nine states, including locations in Tennessee. The company was founded in Chattanooga in 1932.
Statement from The Krystal Company:
Both company operated and franchised Krystal restaurants will remain open and operating as usual and our customers can expect to continue to enjoy the same great food and service that they have come to expect from us. The Company will continue operating in the ordinary course of business throughout the bankruptcy case.
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. We are pleased to be ready to move towards a brighter future for the brand and have the support of our stakeholders.
Krystal has established a Restructuring Information Hotline for interested parties at (888) 249-2792 (U.S./Canada) or (310) 751-2607 (International).