Southern Fast Food Favorite Krystal Is Filing for Bankruptcy, but Hope Isn't Lost
Krystal is White Castle of the South, but with mini-pups and better breakfast. The chain has been shelling out self-described "sackfuls" of sliders since 1932, making its original Chattanooga, Tennessee location a historical landmark in the eyes of teenie-tiny hotdog lovers everywhere.
But fast-food chains, unlike other locations of national significance, are not protected under law -- especially if they're between $50 million-$100 million in debt. And according to CBS News, Krystal filed a Chapter 11 petition in federal bankruptcy court on Sunday. The company reportedly abused its creditor card, most notably with an advertising agency called The Tombras Group.
According to CNN, the bakruptcy filing largely blamed the "tight labor market," which has made it difficult to find employees. It mentioned that a 200% turnover rate isn't "uncommon" in the industry. A moment of silence for that.
So, what does this mean? The chain has seen better days, but we consumers might still be able to get our fix of Chiks. As far as we know, none of the approximately 300 restaurants the chain operates are closing yet. The 11th chapter of the Bankruptcy Code permits reorganization after bankruptcy, so we can keep munching while the headquarters burns. Or something like that.