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Jack’s Donuts files for bankruptcy after failed commissary shift, citing $14M in debt and ongoing legal issues.
Jack’s Donuts of Indiana Commissary LLC has filed for Chapter 11 bankruptcy, citing over $14 million in liabilities and more than 100 creditors, with assets valued at $1.4 million.
The filing stems from a failed 2023 shift to a centralized commissary that required franchisees to stop in-store production, leading to widespread complaints about declining product quality, franchisee unrest, and falling sales.
The company faces a $3.5 million judgment from Old National Bank, a $769,000 debt to Carter Logistics, and a cease-and-desist order over unregistered securities sales.
Despite the bankruptcy, all stores remain open, franchisees are operating independently, and the company aims to reorganize under court supervision.
CEO Lee Marcum is under investigation for alleged financial misconduct and securities violations.
Jack's Donuts se declara en bancarrota después de un fallido turno de comisario, citando $14 millones en deuda y problemas legales en curso.