Back Yard Burgers Inc., a popular fast food restaurant, filed for Chapter 11 bankruptcy last week, according to Bloomberg.
The Nashville-based company has 20 restaurants in various states. According to its bankruptcy paperwork, the company is $50 million in debt and has assets of $10 million.
The filing took place in Delaware and only includes restaurants owned by the company, not stores that are owned by franchisees, according to Bloomberg.
The company’s chief executive officer, James Boyd Jr., said it has reached a settlement with its creditors, and the bankruptcy was prearranged. “This agreement is the culmination of an ongoing plan to improve the company’s operations by restructuring debt, addressing underperforming locations and identifying opportunities for growth,” Chief Executive Officer James E. Boyd Jr. said in a statement.
While Backyard Burgers’ filing may seem like it does not represent how bankruptcy can help a citizen, it does. Much like a Chapter 11 bankruptcy, Chapter 13 and Chapter 7 bankruptcies can help people stop collections, stop foreclosures and restructure debt.
Talk to our attorney about what bankruptcy can do for you. If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.