Southern burger chain Krystal files for bankruptcy

www.washingtontimes.com ^ | 01/23/2020 | staff

[Red Badger]

BIRMINGHAM, Ala. Krystal Co., the Georgia-based restaurant chain known for tiny hamburgers and late-night service across the Southeast, has filed for bankruptcy, but said Tuesday that all of its locations would remain open.

Federal court documents showed Krystal sought Chapter 11 bankruptcy protection in Atlanta on Sunday. The company said it owed between $50 million and $100 million to food suppliers, equipment companies and others.

Krystal has about 300 restaurants in 10 states, 182 of which employ 4,890 people and are operated by the company, restructuring officer Jonathan M. Tibus said in a court filing. Another 116 are run by franchisees, he said.

The company previously closed more than 40 restaurants, including 13 that shut down in December, over the past year, according to court documents. Shifting consumer tastes, growing costs, tight labor markets and the growth of online food ordering all contributed to the company’s financial problems, Tibus said.

“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,” the company said in a statement Tuesday.

[petitfour]

I must’ve been. I don’t know the Hullabaloo. Lol

[Red Badger]

When I worked for Krystal as a young man in 1970-73, the management was great. Restaurants were kept spotless, employees were happy and there were incentives...............

[HotHunt]

My lady friend who is the General Manager of a Krystal store here in Florida, came over from McDonalds. It is a franchise owned, not a company owned, outlet.

She says it was a dive. Dirty, equipment in disrepair, roof leaking, rotten employees, lousy numbers.

To be fair, she was hired to turn the store around and make it work again. She had to come in and basically start over. Fired people, hired new people, fixed stuff, cleaned it up and got their numbers back up again.

But she threatened to quit last fall when the management hadn't remodeled the store, replace old equipment and make repairs as they had promised her they were going to do back in the spring 2019 when they hired her.

They apparently took her threat seriously and it is being remodeled as I write this.

But she hasn't told them yet but she's taking as new job as a District Manager over several Burger Kings in a couple of months. She told me that the franchise owners and management at Krystal sucks and are not a professional outfit. She's tired of fighting them to get things done she needs to keep it profitable.