The parent of the Mrs. Winner’s Chicken & Biscuits quick-service chain has filed for Chapter 11 bankruptcy protection.
Famous Recipe Company Operations LLC filed in U.S. Bankruptcy Court of the Northern District of Georgia. The filing listed estimated assets of about $2.4 million and liabilities of nearly $22 million.
Court documents show that the chain’s income had been falling steadily, from $64.4 million in 2007 to $55.7 million in 2008 and $40.6 million in 2009.
According to The Atlanta Journal-Constitution, Mrs. Winner's has been closing restaurants and now has about 30 locations, down from 110.
Famous Recipe's top 20 creditors include GE Capital Finance Corp., which is owed $549,751 for past due lease payments; $1.3 million to the Georgia Department of Revenue, for sales tax; and $2.1 million to the Internal Revenue Service.
The attorney representing the company was unavailable at press time.
Contact Paul Frumkin at [email protected].