Owners of 70 Jack in the Box Restaurants in Missouri and Illinois File for Bankruptcy | Local company
ST. LOUIS – The owners of 70 Missouri and Illinois Jack in the Box restaurants filed for bankruptcy this week, citing competition and the coronavirus pandemic.
The Chapter 11 files potentially affect 57 restaurants in Missouri, with 1,338 full and part-time workers, and 13 restaurants in Illinois, with 332 other workers, but the files indicate that major creditors “have tentatively agreed. to participate in mediation ”after the bankruptcy case. is filed and lawyers filed petitions to keep the employees paid.
Tuesday’s St. Louis filing indicates that the companies, Missouri Jack LLC and Illinois Jack LLC, were already feeling financial pressure from increased competition from fast food restaurants that has squeezed market share and made it difficult to find employees. The companies were behind on loan payments from City National Bank, their largest creditor, and the bank filed a lawsuit earlier asking for more than $ 15 million owed on several loans.
Then the coronavirus pandemic struck, according to the documents, further hurting businesses.
The companies were negotiating and offering to close seven or eight unprofitable restaurants, but were unable to reach a deal with the bank, the documents said.
Missouri Jack owes $ 927,000 to its 20 major creditors, other than the bank and Jack in the Box, including $ 115,000 to Ameren and nearly $ 168,000 to American Express, according to court records. Illinois Jack owes nearly $ 170,000 to its top 20 creditors.