Krystal Restaurants File For Bankruptcy
The other restaurant chain known for its square and inexpensive hamburgers has announced that it is seeking bankruptcy protection from its creditors. Krystal Company, based out of Georgia, made that filing in Atlanta last week.
The company, in court filings, suggested that it owed food and equipment suppliers between $50 and $100 million dollars. However, company officials said they do not plan on closing any more locations because of the recent filing.
Krystal Restaurants and their iconic square hamburgers have the South's answer to White Castle since the 1930s. The restaurants were founded in Chatanooga Tennessee during the Great Depression and now boast about 300 stores in 10 states. An additional 116 stores are operated by franchisees throughout the footprint of the brand.
Company officials blame the downturn in business on shifting consumer tastes, growing costs, tight labor markets and the growth of online food ordering. Krystal currently operates stores in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee.