TAMPA Fla. A bankrupt Church's Chicken franchisee here is reportedly auctioning off its 15 restaurants, as well as the assets of three shuttered units, to repay the nearly $6 million it owes to creditors. Quick Service Foods filed for Chapter 11 bankruptcy protection in February.
The auction, which will take place next month, was approved by a federal bankruptcy judge.
Among Quick Service Foods' creditors is GE Capital Franchise Finance Corp., to which it owes about $5 million, according to a recent report in The Tampa Tribune.
Quick Service Foods, which is led by Ford Reihani, closed three unprofitable stores around the time of its bankruptcy in February. At that time, the franchisee said that a 10-percent decline in 2007 sales, to $11 million, and rising fuel costs were the underlying factors.
Court documents in February showed the company had claimed assets of $10 million to $50 million and liabilities of $10 million or less.
Calls on Monday to Reihani, his attorney and Church's parent Cajun Operating Co. were unreturned as of the time of this posting.
Church's Chicken, based in Atlanta, has more than 1,600 units in 19 countries.