Overview
- M&M Custard and 31 affiliated entities filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Kansas on Friday.
- The case covers 32 Freddy’s locations, and the franchisee says restaurants will continue or resume operations during restructuring.
- Filings list between 100 and 199 creditors, and the company says funds will be available to pay unsecured creditors.
- The franchisee operates dozens of units across Missouri, Kansas, Illinois, Indiana, Kentucky, and Tennessee, and local reports say several stores may close as part of the reorganization.
- Freddy’s corporate parent is not part of the filing, and coverage ties the move to broader pressure on restaurant traffic from lower- and middle-income consumers.