Overview
- M&M Custard filed on Nov. 14 in the U.S. Bankruptcy Court for the District of Kansas, listing about $5.2 million in assets against roughly $27.7 million in liabilities.
- The company says restaurants will stay open during the case, and its co-founder said there are no plans for additional closures at this time.
- The franchisee operates locations across Missouri, Illinois, Kentucky, Tennessee, Indiana, and Kansas, after previously reaching as many as 42 stores.
- Court filings describe the six Chicago units acquired in 2021 as a “toxic asset” after underperformance, noting roughly $1 million invested and subsequent closures in that market.
- The debtor seeks authority to keep current banking arrangements and manage cash flow, and the case concerns this franchisee rather than the Freddy’s brand owned by Rhône.