Krystal has filed for Chapter 11 bankruptcy protection , citing debts between $50 million and $100 million.
Based out of Dunwoody, Georgia, the company filed its petition with the Northern District of Georgia bankruptcy court on Sunday.
The Krystal Holdings Inc. petition listed 30 unsecured creditors, with the largest being The Tombras Group media agency of Knoxville, Tenn., at $4.2 million, US Foods Inc. of Rosemont, Ill., at $2.9 million and Radiant Systems of Atlanta at $560,053.
A major management shakeup in November included their CFO Paul Macaluso leaving the brand , and former Captain D’s Tim Ward as President and COO.
At present time Krystal is working on the following :
- Smaller restaurants with less seating and more kitchen space.
- Re-franchising 100-150 of their company owned restaurants.
Krystal was founded in 1932 in Knoxville. It was #112 among U.S. systematic sales in 2018.