Another fast food franchise now declares an unexpected bankruptcy as a result of failing locations, sources report.
Rival chains including Restaurant Brands International’s (QSR) Burger King and Popeye’s have struggled to keep up, reports TheStreet.
Now, after Burger King saw multiple franchise owners file for Chapter 11 bankruptcy protection, another RBI brand operator has followed that path and filed for Chapter 11 bankruptcy protection.
“Popeye’s likely suffered worse than Burger King during the covid pandemic because some of its locations lacked drive-through lanes.
That meant that customers who wanted to pick up their orders had to enter the restaurant at a time when people were uncomfortable doing that,” the outlet reports.
RRG, Inc., which operates 17 Popeye’s locations based in Georgia, has filed for Chapter 11 bankruptcy protection with the United States Bankruptcy Court for the Southern District of Georgia.
The owners, Mark Rinna and Jane Rinna, said that the filing is because a few locations are dragging the rest down.
“Debtor is filing bankruptcy as a result of failing locations.
Debtor has approximately three Popeye’s restaurants that have significantly lost money and caused a financial burden on the continued operation of the remaining restaurants.
[Furthermore] Debtor has fallen behind on lease payments of remaining profitable restaurants and needs to cure those arrearages to avoid lease termination,” the company shared in its bankruptcy filing.
The owners say they plan to continue operating while in Chapter 11.
This is the second Popeye’s franchisee to file bankruptcy over the past 12 months as Premier Cajun Kings filed for Chapter 11 bankruptcy in March 2023 after its owner died.
The three-page RRG court filing does not contain any details about the size of its debt or the cost of its leases.
For more news and updates like this, opt-in for push notifications.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
A popular furniture store now announces an unexpected closure, shuttering a total of 6 locations in the same city, sources report.
The RoomPlace announced on Friday that a total of six locations in and around Indianapolis, Indiana would be closing as the company files for Chapter 11 bankruptcy.
Locations in Kenosha, Wisconsin and Peoria, Illinois are also set to close their doors.
The Bed Bath and Beyond rival has claimed that the restructuring will allow the retailer to strengthen its business in other populous areas, such as Chicago, Illinois.
CEO Bruce Berman confirmed that the decision to close the stores was not “easy.”
“As a family-run business with strong community ties, it’s not an easy decision to close stores and impact the people who work, shop and live in the affected communities,” Berman told Furniture Today.
“Retail sales throughout the country continue to be down, and our industry has been hit hard.
We’re making the tough decisions now to ensure we’re around for another 100 years.”
As six stores are shuttering, the company is looking to strengthen 18 locations in and around the Chicago area.
“What was once viewed as taboo is now a strategic way to realign and strengthen a business,” Berman said.
The CEO has said the company is hopeful the changes will “align its costs with its projected sales and economic realities.”
Berman acquired The RoomPlace, which opened in 1912 after winning an auction in December 2011.
No date has been yet set for the closure of the six locations and any orders placed before February 2 are expected to still be fulfilled.
The RoomPlace stores affected by the decision are located at 5651 E. 86th St., 7609 Shelby St., 8401 Michigan Road, 8301 E. Washington St. in Indianapolis; 14640 Greyhound Plaza in Carmel; as well as 2575 E. Main St., Suite 198, in Plainfield.
For more news and updates like this, opt-in for push notifications.
Also Read: A Home Improvement Retailer Now Closes All 157 Stores
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
Scroll below to view my stock purchases this month!
You can also follow me on X (Twitter), Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.
Frank Nez’s Stock Portfolio
Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?
Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.
11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.
Recommended For You ✨
About The Author
Leave your thoughts below.
For more news and updates like this, opt-in for push notifications.