The Krystal Company files for bankruptcy

CHATTANOOGA, Tenn. (WTVC) — The Krystal Company, the fast food restaurant chain that started decades ago in Chattanooga, has filed for bankruptcy.

On Sunday, the company voluntarily filed for Chapter 11 bankruptcy protection in the state of Georgia on Sunday from their offices in Dunwoody, Georgia.

The paperwork filed by the company cites debts between $50 million and $100 million, and estimates that the company has between $10 million and $50 million in assets.

“The actions we are taking today will enable Krystal to establish a stronger business for the future,” said Krystal President Tim Ward in a statement, “We look forward to emerging from this process as quickly and efficiently as possible with the support of our valued customers, team members, franchisees, and suppliers."

Officials said in the statement that the company has filed several motions to get authorization to continue operating during the Chapter 11 proceedings. "These include, among others, authorization to continue to pay employee wages and benefits, honor customer programs, and ensure utility services," the statement reads.

The company also says it has been in touch with its key suppliers to help make sure products will continue being shipped to their restaurants in a timely fashion.

Krystal was founded in Chattanooga in 1932, and the company's website says since then it has been serving guests at its approximately 320 restaurants in nine states, including Tennessee, Georgia, and Alabama.

Officials announced in November 2019 they hired President Ward and a new chief financial officer to lead the company's "ongoing revitalization plan."