Restaurant chain files for bankruptcy and blames the rising cost of food and workers for its financial woes
Major restaurant chain files for bankruptcy, blaming skyrocketing food costs
- M&M Custard LLC, a significant franchisee of Freddy’s Frozen Custard and Steakburgers, has filed for Chapter 11 bankruptcy.
- The company, which operates over 30 locations across six U.S. states, reported $5.52 million in assets against $27.7 million in liabilities.
- Reasons for the bankruptcy include escalating food and labor costs, alongside the poor performance of its Chicago stores, which were acquired in 2021 and deemed “toxic assets.”
- Eric Cole, Co-CEO of M&M Custard LLC, confirmed that there are no plans to close any additional stores beyond those already shut in the Chicago market.
- This bankruptcy filing specifically impacts M&M Custard LLC's franchised locations and does not affect the wider Freddy’s Frozen Custard and Steakburgers brand.