A massive restaurant with 800 locations now begins to close down after facing rising financial problems, sources are confirming.
Bojangles may not be as big of a name as Burger King or Popeye’s, but it’s a popular chain with more than 800 restaurants in eight states.
Like RBI, Bojangles uses a franchise model, which makes it dependent on the financial health of its operators.
The company ultimately saw all its Maryland locations close due to the financial situation of one of its franchisees, reports TheStreet.
However, unlike RBI, Bojangles is not public — it was taken private by Durational Capital Management LP and Jordan Co. in 2018 — which means the company does not disclose its financial information to the public.
“That makes it hard to know whether overall softness for the brand contributed to the chain seeing its five Maryland locations close after a Chapter 11 bankruptcy filing,” says TheStreet.
Even though the locations still appear on the Bojangles website, they have been shuttered since late 2023.
The locations were operated by Salim Kakakhail and Yavir Akbar Durranni.
Partners operated under a variety of LLCs, including ABS Network, according to local news channel WUSA9.
The station reported that the owners face a state investigation over complaints of wage theft and fraudulent W2s.
In November Durranni and ABS Network filed for bankruptcy in New Jersey, WUSA9 reported.
“Not only do former employees say these men owe them money, WUSA9 learned the former owners owe the state, too, and have over $69,000 in back property taxes.”
Former employees also say that the restaurant would regularly purchase fried chicken from Popeyes and Safeway when it ran out in their stores, the station reported.
Bojangles sent the station a comment on the situation.
“The franchisee is no longer in the Bojangles system,” the company said.
“However, it is important to note in your coverage that franchisees are independent business owners who are licensed to operate a brand but have autonomy over many aspects of their business, including hiring employees and payroll responsibilities.”
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Also Read: Another Facility in South Carolina Now Announces An Unexpected Closure
Other Economy News Today
A clothing retailer now announces the unexpected closure of all locations as it embarks in a new journey to go fully online.
Outdoor Voices will reportedly shut all of its stores on Sunday, employees of the activewear company have said.
Four employees at four different stores, speaking on condition of anonymity, confirmed the March 17 closures to The New York Times.
The publication said it had seen at internal Slack message sent to employees on Wednesday notifying them that the chain “is embarking on a new chapter as we transition to an exclusively online business.”
The message, other reports suggested, doubled as instructions for what to tell customers.
The message, The Times reported, said products in stores will be discounted 50%.
Current and former Outdoor Voices employees at stores in Austin, Denver, Atlanta, Charlotte, New York, Houston and San Diego also confirmed the news to Axios reporters.
One Austin employee who worked on the company’s marketing team told the publication they and other employees were laid off on March 12 and it was “very sudden”.
“Store teams were told by their manager — who were also laid off — that effective as of end of day Sunday that every single one of our Outdoor Voices stores are closing as well,” the unnamed employee said.
Two of the employees the Times spoke to said they were not offered severance.
Outdoor voices has 16 retail locations, according to its website.
The company was founded by Ty Haney in 2014.
Haney left in 2020 and has since made her feelings very clear: “It’s kind of sickening to see how low it’s gotten,” she said in an interview with The Cut in August 2023.
“I feel sad for it.”
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Also Read: Massive Shoe Retailer Is Now Closing A Quarter of Stores
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