M&M Custard LLC, a key franchisee of Freddy’s Frozen Custard & Steakburgers, has filed for Chapter 11 bankruptcy protection. The filing occurred on November 14, revealing substantial financial challenges.
Financial Overview of M&M Custard LLC
The company’s reported figures indicate assets of $5 million against liabilities nearing $28 million. This stark contrast underlines the financial strain M&M Custard is currently facing.
Locations Impacted by Bankruptcy Filing
The bankruptcy includes 32 Freddy’s Frozen Custard locations across several states. M&M Custard operates in:
- Missouri
- Kansas
- Illinois
- Indiana
- Kentucky
- Tennessee
In the Kansas City area, three specific locations are affected:
- Gardner, Kansas
- Martin City, Missouri (13628 Washington St.)
- Sedalia, Missouri
Operational Status and Future Plans
Despite the bankruptcy filing, all Freddy’s locations owned by M&M Custard will continue to operate normally for the time being. M&M Custard LLC, which is among the largest franchisees of Freddy’s, does not own the brand itself.
As part of its restructuring efforts, M&M Custard intends to close some stores, although specific locations have not been disclosed yet. The company has requested court permission to maintain its current banking system and accounts, which it believes will facilitate resource sharing among franchises.
Seeking Court Approval
The bankruptcy court’s approval is crucial for M&M Custard. The company seeks to modify certain bankruptcy rules that govern its financial operations. If granted, this would enable them to reorganize their debts effectively and stabilize their financial situation.
M&M Custard is optimistic about its ability to navigate this challenge successfully. The company aims to emerge from bankruptcy as a stronger entity, focusing on long-term viability and sustainability.
