Summary
Jack's Donuts of Indiana has filed for Chapter 11 bankruptcy, which allows them to reorganize and pay their debts while keeping their business running. The parent company owes $14.2 million but only has $1.4 million in assets. Despite financial issues, Jack's Donuts says their stores will stay open and individual franchise locations are not part of the bankruptcy case.
Key Facts
- Jack's Donuts of Indiana filed for Chapter 11 bankruptcy in Indiana.
- The company owes $14.2 million but only has $1.4 million in assets.
- Jack's Donuts operates 24 locations, with 14 owned by independent franchisees.
- The bankruptcy applies to the corporate commissary, not individual franchises.
- Franchisees accused the CEO, Lee Marcum, of misusing funds and mismanagement.
- Old National Bank is seeking $3.4 million due to loan defaults.
- Jack's Donuts' stores remain open despite the bankruptcy filing.
- The Indiana Secretary of State's office issued a cease-and-desist order to prevent Marcum from selling unregistered securities.
