Bankruptcy Update. Yesterday it was reported that the owner of 70 Jack in the Box franchise restaurants, including 10 located in Fresno, also has filed Chapter 11 bankruptcy protection for the 10 TGI Friday restaurants he owns in Northern California and the Pacific Northwest. The bankruptcy filing does not affect the TGI Friday restaurant located at Herdon and First in Fresno. According to news sources, the owner is facing tax and business operating debt. The restaurants have reopened, but its unclear how this set of multiple bankrupties will play out in the future.
Posts Tagged ‘Fresno Company In Bankruptcy’
Owner of Local Jack in the Box Franchises Also Files Bankruptcy On TGI Friday Restaurants
Monday, October 5th, 2009Bankruptcy Hits Fresno “Jack in the Box” Franchise Owner
Sunday, October 4th, 2009
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.
