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Jack’s Donuts Commissary Files for Chapter 11 as Debts Exceed $14 Million

Franchise locations say operations continue outside the bankruptcy case.

Overview

  • The Oct. 29 filing in the U.S. Bankruptcy Court for the Southern District of Indiana lists about $14.2 million in liabilities against roughly $1.4 million in assets and more than 100 creditors.
  • Two affiliated entities, Marcum Industries and KCL Group, filed at the same time, according to Newsweek.
  • The New Castle commissary, opened in 2023 to centralize production for roughly two dozen locations, features prominently in the company’s recent financial strain.
  • Named creditors include Carter Logistics, which sued over more than $700,000 in alleged unpaid delivery fees, and Old National Bank, reported with a $3.5 million judgment.
  • The company states only franchisor-related entities are in the case, and notes Chapter 11 allows continued operations under court supervision while a reorganization plan is developed.