In the world of business, there are few terms as concerning as “bankruptcy.”
Somewhat surprisingly, business bankruptcies have actually declined in recent years in comparison to pre-pandemic rates.
Last year, however, was a noteworthy one for the restaurant space and bankruptcies.
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2022 saw a number of well-known brands capitulate and declare insolvency.
Other chains disappearedfrom the restaurant map entirely.
Fast forward to today, and 2023 has seen even more restaurant bankruptcies.
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There’s no one reason for this troubling trend.
The U.S. economic climate as a whole continues to operate under an air of uncertainty andinflation remains rampant.
As of April 2023, the franchisee hadreceived offers on 82 locations.
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Now,the franchisee is planning to find a buyerafter filing for Chapter 11 bankruptcy in May 2023.
The operator has already shuttered 39 locations this year.
Until then, it’s “business as usual” for those restaurants.
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Over the years Mr. Sudhu expanded business considerably with 24 additional units in the South.
At its peak,PCK operated 30 restaurantsand generated over $30 million in annual sales (2020,2021).
An 11th unit, meanwhile, was evicted by a landlord, leaving the company with 19 restaurants.
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PCK filed for bankruptcy in March 2023.
Premier Cajun is planning on keeping its remaining units open during bankruptcy proceedings.
Jump to June 2023, and Corner Bakery justaccepted a $15 million purchase bidfrom SSCP Management.
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Although, to be fair, this is a rare case tied to a heinous crime.
The victim’s family filed a negligence lawsuit against the franchisee and fast food chain in September 2021.
