NATIONWIDE – Krystal, the Georgia-based burger chain, has filed for bankruptcy.
- Krystal, the well-known burger chain, files for bankruptcy
- Company said it had between $50 million and $100 million of debt
- Krystal plans to keep restaurants open during the bankruptcy process
The company filed for Chapter 11 bankruptcy protection on Sunday, citing debts between $50 million $100 million, according to court documents.
"The actions we are taking today will enable Krystal to establish a stronger business for the future," Krystal president Tim Ward said in a news release. "We look forward to emerging from this process as quickly and efficiently as possible with the support of our valued customers, team members, franchisees and suppliers."
Krystal said its restaurants will remain open during the process.
The company blamed shifting consumer tastes and increased competition as reasons for its financial woes.
"The proliferation of fast casual restaurants as well as online delivery platforms has created new competition for traditional quick-service chains," the filing said. "Moreover, quick-service restaurants have faced increased difficulty finding and retaining qualified employees in the current labor market."
Krystal is one of the oldest fast-food chains in the U.S. having started in 1932 in Chattanooga, Tennessee. There are more than 300 Krystal restaurants in 10 states, including Florida, Kentucky, North Carolina and South Carolina.
