Fast Food Chain Krystal Files For Bankruptcy
KRYSTAL, 88-YEAR OLD BURGER RESTAURANT CHAIN, FILES FOR CHAPTER 11 BANKRUPTCY
(CNN) – Krystal, a popular burger chain in the southeast, has filed for chapter 11 bankruptcy.
The south’s answer to White Castle, was founded in Chattanooga; it first opened in 1932.
For now, its 318 restaurants will continue to operate, business as usual.
Krystal executives blame increasing competition, shifting consumer tastes and the rise of online delivery platforms.
In a statement released on Monday, the company says it is hoping the chapter eleven filing will enable the burger chain to reorganize.
Krystal holdings is reporting debts of between $50 million and $100 million.
The company hopes to emerge from bankruptcy stronger and more efficient.
Krystal recently relocated its headquarters to Atlanta.