WASHINGTON (dpa-AFX) - Fast food chain Krystal Company has filed for bankruptcy, according to reports.
The Atlanta-based Krystal filed for Chapter 11 on Sunday in the U.S. Bankruptcy Court in Atlanta. In the filing, the company reportedly disclosed assets between $10 million and $50 million, and liabilities between $50 million and $100 million.
The company's restaurants will remain open for business during the bankruptcy process. The fast-food chain is known for its iconic small, square hamburgers, specially prepared with a steamed-in onion flavor.
The 88-year-old company cited strong industry-specific headwinds such as shifting consumer tastes, increased competition, and the proliferation of online delivery platforms as reasons for its bankruptcy.
Krystal also noted that company-specific business challenges contributed to its deteriorating financial performance.
In November 2019, Krystal hired two senior executives with extensive QSR experience to lead its ongoing revitalization plan. The company appointed Tim Ward to the newly created position of president and chief operating officer, while Bruce Vermilyea was named chief financial officer.
Krystal is one of the oldest fast-food chains in the U.S. The company was founded in Chattanooga, Tennessee in 1932, but moved its headquarters to Dunwoody, Georgia in 2013.
Krystal remains a southern chain, with about 320 restaurants in nine states. Krystal's Atlanta-based Restaurant Support Center serves a team of 7,500 employees.
Copyright RTT News/dpa-AFX
© 2020 AFX News
