One of the largest Jack in the Box franchise owners, Abe Alizaden, filed Chapter 11 bankruptcy protection for his 70 Jack in the Box fast food restaurants in early September. The Chapter 11 filing seeks reorganization of debts of Korba Associates, Inc. — the corporate entity that owns and operates Jack in the Box restaurants from Redding to Fresno.

 The filing took place in the Eastern District of California, Sacramento (the same judicial district for the Fresno Bankruptcy Court).

Alizaden, a real estate developer and former owner of the Triple A baseball team the Portland Beavers, filed Chapter 11 for his real estate business in 2008. He also owns TGF restaurants, but they are not included in the bankruptcy filing.

The 11 Fresno Jack in the Box locations were temporarily closed due to the filing, but now have reopened.

In total, the company employs approximately 2000 employees, and as of 2007, was doing approximately 100 million in sales.

According to the bankruptcy filing, Kobra owes approximately $1.5 million in back taxes and large amounts in insurance payments, utilities and franchise fees to Jack in the Box, Inc. As one of the largest Jack in the Box franchise owners, its unclear whether the Chapter 11 reorganization will allow its creditors to be repaid or whether the corporate parent Jack in the Box may seek to take over the restaurants. Stay tuned.